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Home » Analysis » Market Analysis » UK Monthly Used Car Market Data – Analysis May 2023

UK Monthly Used Car Market Data – Analysis May 2023

Time period 24/02/2023 to 12/05/2023

Summary of UK used car market for the period.

The UK used car market has seen a slight contraction in terms of dealership numbers. The total count of dealerships dipped from 9576 to 9423, indicating a potential consolidation in the market or a shift towards online sales platforms.

The total number of physical dealership locations, or ‘rooftops’, also experienced a downward trend, decreasing from 15794 to 14873.

This could be a reflection of the challenging economic conditions or the growing preference for online car shopping.The volume of advertisements for used cars showed minor fluctuations, starting at 540892 and ending slightly lower at 540185. This suggests that despite the decrease in dealerships, the market remains competitive with a steady flow of used car listings.

The average time a used car spent on the market, also known as ‘Days on Market’ (DoM), remained relatively stable, hovering around 52 days.

This indicates a consistent demand for used cars in the UK. The average listing price of used cars showed minor fluctuations around £19,400, suggesting a stable price range preferred by both dealers and customers.

This report was written using our own used car market data across ~600,000 daily adverts from 10,000 dealers by our AI analysis engine linked to our used car data API.

Breakdown of listings by price bands:

The number of used cars listed under £10,000 and between £10,001-£20,000 saw a slight decrease over time.

This could be due to a shift in consumer preference towards higher-priced used cars or a decrease in the supply of lower-priced cars.

Listings in the £20,001-£30,000 range remained relatively stable, indicating a steady demand for used cars in this price bracket. Listings in the higher price ranges (£30,001-£40,000, £40,001-£50,000, and above £50,000) saw a slight decrease, possibly due to a more limited market for these higher-priced used cars.

Number of dealers by advert volumes:

The number of dealerships with less than 100 adverts decreased slightly, suggesting a potential shift towards larger inventories or a consolidation of smaller dealerships.

Dealerships with larger advert volumes (101-250, 251-500, 501-1000, and 1000+) remained relatively stable, indicating a consistent marketing effort by these dealerships.

Analysis by the dealers who make up the top 100 by volume:

Stock volumes among the top 100 dealerships by volume fluctuated but ended slightly lower than the starting point.

This could reflect changes in inventory management strategies or market demand.The average price of used cars among these dealerships remained relatively stable around £22,800, suggesting a consistent pricing strategy.

Price revision data showed more decreases than increases over time, indicating a competitive market where dealerships are actively adjusting prices to attract customers.

Analysis of dealers outside the top 100:

Stock volumes among dealerships outside the top 100 fluctuated but ended slightly higher than the starting point. This could reflect a diverse range of strategies and market conditions among these dealerships.

The average price of used cars among these dealerships remained relatively stable around £17,400, suggesting a consistent pricing strategy.

Price revision data showed more decreases than increases over time, indicating a competitive market where dealerships are actively adjusting prices to attract customers.

Summary

The UK used car market has shown resilience amidst slight contractions in dealership numbers and physical locations. The steady flow of used car listings and consistent ‘Days on Market’ suggest a balanced supply and demand.

However, the decrease in listings in most price bands, particularly the lower ones, could indicate a shift in consumer preference or market supply. The top 100 dealerships by volume and those outside the top 100 showed similar trends, reflecting the competitive nature of the UK used car market.

Despite the challenges, dealerships are actively adjusting their strategies, as seen in the frequent price revisions. As the market continues to evolve, these insights can help dealerships make informed decisions and adapt to changing market conditions.

Market Sample Size

Total Dealerships – 9,516
Total Rooftops – 15,508
Total Adverts – 546,576
Days on Market Average £19,491

Discover the latest trends and sales figures in the UK used car market for 2022-2023.