After a few months of cooling prices, there was a positive sign for used car values in April. We want to have a closer look at it to see what it could mean for the market. Then, if you want to try your hand as a car broker, you can learn from us.
Latest data
The figures from the Motors Market View show that April was the first month of price increases in 2024. Their data says the average was £16,964, a 1% rise month on month (MoM). In monetary terms, that added £146 to the value of an average used car.
To get a real idea of what this means, it is a good idea to look back at previous years. If you look at year on year (YoY), the April average was 9% below 2023 (£18,564). That is a big difference, but it bears keeping in mind that we had a sustained period of years of growth in prices, including a new historic high in January 2023.
In a more positive light, the April 2024 average was still ahead of where prices were in 2020, pre-covid. In fact, they are some £1,200+ higher.
Age
According to the data, only two age brackets saw an increase in used car values. The first of these were vehicle between two and five years old. The second was five to ten year old cars. Both had growth of 0.3%. It is a good idea for every car broker to keep an eye on price points for different aged vehicles.
Power source
It is also worth looking at it by different power sources. Surprisingly, the average value of EVs had the biggest increase MoM, climbing by 2.5%. Petrol was second with a 2% increase. Diesel had a 1% increase too. However, it was a sadder story for hybrids; they lost 2.5%. Prices were also down across the board in comparison to April 2023.
Dealer stock
There was another positive piece of information in the Motors Market View data. It said that the stock of used vehicles is up MoM, almost reaching parity with April 2023. Franchise dealers saw the biggest increase in the month, with inventories increasing from 51 to 55 units on average. Car supermarkets had an increase too.
The increase in stock last month is likely largely because of the arrival of the new 24 number plate in March. More drivers will have chosen to exchange older vehicles to get one.
Do you think you could be a car broker?
Overall the data is good reading for dealers, brokers, and other stakeholders. It could be a sign that we’re seeing price correction and an end to the dip in values. We’ll have to see what happens in May and June though.
Whatever happens, it is clear there are plenty of opportunities in the market. Dealers can take advantage of them by keeping an eye on the data and working with experts that can help them source vehicles. So, it is an interesting time to be a car broker.
If you want to become a broker, you can learn more about what they do and find some incredible resources on our website. You also have the option to contact us if you have questions.
