eBay Motors Group

Latest News from eMG

Advertised used car prices dip 1.1% in July as days to sell improves

  • Average price of a used car drops to £16,652, but up 15% YoY
  • Days to sell improved MoM from 39.5 to 37.9 days
  • Stock levels drop marginally month-on-month from 44.8 to 43.2 units

1 August 2022 - The average price of a used car dipped for the sixth month in a row in July as dealers sold cars faster, albeit from smaller inventories, according to the latest eBay Motors Group Market View.

Prices dropped 1.1% to £16,652, a month-on-month shortfall of £189, although tracking 15% higher than July 2021.

Drops were recorded across all car retailing sectors led by independents down 1.2% to £14,064, followed by franchised dealers down 0.8% to £20,201 and car supermarkets down 0.7% to £16,688.

Stock levels, which have been slowly declining since April, when they reached an average of 46.8 units, dropped marginally month-on-month from to 44.8 to 43.2 units. Although they remained 4% ahead of last July's 1.5 units.

Independent dealer inventories averaged 34 units, down from 36 in June but up nearly 10% year-on-year; while franchised averaged 51 units, compared to 53 in June. Car supermarkets remained unchanged at 282 units.

However, days to sell improved in July, following a rise in June, averaging 37.9 day across all retailers, compared to 39.5 in June and 39.2 a year ago.

The fastest sales were achieved by car supermarkets averaging just 27.8 days, compared to 28.5 days in June, followed by franchised dealers at 33.9 days compared to 35.6 days in June. While independents were virtually unchanged at 46.9 days.

"Although the average advertised price of a used car has been dropping month-on-month since hitting an all-time high in January*, the dips we are seeing follow the gradual decline in trade values. Pricing remains resilient as illustrated by year-on-year comparisons with the overall average price £2,158 higher in July than 12 months ago," said Lucy Tugby, head of marketing at eBay Motors Group.

"The cost of living crisis is still severely impacting households. It's more important than ever for dealers to ensure they are presenting and pricing stock attractively and providing support and guidance for nervous buyers," she said.

"Dealers are continuing to address the ongoing supply challenges by fighting to maintain consistent inventory levels, with many only able to buy stock to replace sold cars. Many have done a great job adjusting to the market conditions by maintaining inventory levels and shifting stock efficiently, putting them in a strong position for the summer holiday period," said Tugby.

You can download the July 2022 eBay Motors Group Market View report here