In May 2023, nearly new used cars experienced a surge in sales in the UK, as shortages in the new car market continued, according to a report by cardealermagazine.co.uk. This development has been a significant piece of car dealer news and motor trade news over the past month.

Data from eBay Motors Group indicated that SUVs were the top-selling used cars on Motors.co.uk, with eight out of the top ten fastest-selling vehicles being this type. The fastest-selling used car in May was the Cupra Formentor, which took an average of just 19.7 days to sell from dealers' forecourts. This was followed by the Seat Tarraco, Hyundai Tucson, and Jeep Compass, with an average sale time of 20.3, 21.5, and 23.4 days respectively.

Furthermore, the report shared that supply constraints resulted in dealers stocking fewer units in May, which led to a reduced average sale time across all dealer sectors. Used cars averaged 36 days on dealer forecourts, demonstrating the demand for nearly new cars. The news highlights the robustness of the used car market, despite challenges in new car supply chains.

However, data from Cap HPI showed a 1.2% drop in used car prices in May, signalling the beginning of a return to normal depreciation patterns, following years of record trade and retail prices. Despite this overall drop, the decline was still above the average of 1.8% seen between 2013 and 2019, indicating the continued resilience of the used car market.

In addition, it was noted that electric car values continued to fall, despite the healthy used car market. Lucy Tugby, eBay Motors Group's marketing director, stated that buyers took advantage of the limited availability to purchase their next family car, with compact to large SUVs being the majority of the month's fastest sellers.

This motor trade news underscores the impact of new car shortages on the used car market, the attractiveness of nearly new vehicles, and the high demand for SUVs, a trend likely to continue as supply constraints persist.

Original article source: cardealermagazine.co.uk