Auto Trader’s data for September has some headline grabbing details about used car prices in the UK. We want to have a look at them today to give car brokers some useful info. Then if you need help with broking, you can browse our website and learn about our products.
The end of a record breaking period
The biggest thing here is September saw an overall drop in the value of second hand cars. The average was £17,736, a 0.4% fall from the same month in 2022. This meant it was the end of over three years (41 months) of consistent growth.
EV price stabilisation?
September was a more positive month for the price of second hand electric vehicles. They have had a very difficult period, with prices tumbling several times. However, values seemed to flatline last month with an average price of £32,142. The hope is it could mark the end of 13 months of decline in values.
What next?
While some may see the drop in overall values of second hand cars as a negative, experts are advising it is not the start of a price crash. This will be good news for car brokers, dealers, and more.
The important thing to keep in mind is some segments of the market had a great period. The values of vehicles 10-15 years old were up by 9.8% on September 2022. In addition, vehicles 15+ years old had a 6.1% YoY price increase.
The dip in overall values is due to prices of newer second hand vehicles falling. Cars that are 1-3 years old had a big 6.7% fall. Vehicles under a year old also had a dip of 2.5%.
These newer second hand cars had a tougher time because of a big increase in supplies. A number of the constraints that have been causing rises in prices in the last few years have been easing. Most notably, new car supplies are increasing. As a result, sales are up and more cars are coming on to the market. That is causing the values to fall because they are outstripping demand.
Experts are warning that while values may continue to ease in the next few months, the market is still healthy.
In terms of EVs, there are plenty of positives. The massive drop in prices means it is much cheaper for people to get their first second hand EV if they want to try it out. Plus, the situation means there is plenty of potential profit for dealers if they can get vehicles at the right prices.
The route to success for car brokers
There are many different jobs in the car industry in the UK. One of the most accessible and rewarding is car broking. Brokers have an important role to fill in helping people find the right vehicles. Primarily this will be dealers looking for cars to sell. However in some cases it can be individuals looking to find their ideal car. It is an exciting job and the potential is there to earn a great income.
If you want to learn more about car brokers, you should browse our website. Then, if you would like to start a business in broking, our materials can be the perfect starting point.
