Around one third of all cars on leased fleets have been extended which has continued to keep the used market short of supply in Q1, reports Aston Barclay.
However, the biggest trend in Aston Barclay’s Q1 report was the lowest ever average fleet mileage recorded of just 31,111 miles at an average age of 40.4 months.
Aston Barclay says it reinforces the change in driving patterns of company motorists caused by the Covid-19 pandemic over the past two years and it will be interesting to see if this trend continues into Q2.
This contributed to average fleet prices rising by £150 to £15,683 during Q1.
A typical used fleet car has risen from £10,411 in Q1 2021 to £15,682 in Q1 2022 which represents a 50.6% price rise (£5,272) in just 12 months.
Aston Barclay has delivered price increases in all but the young dealer part exchange sector (55-75 months of age) according to its latest Insights used market report.
The market for used cars remain very strong, it says, although dealers have started to move towards buying older cheaper stock in the wholesale market as retail confidence is hampered by the rising cost of living.
At the higher price end of the market over £25,000 dealers are only buying specific high specification and good colour combination models.
Generally, dealers are looking to buy cars to meet orders rather than to add speculatively to their forecourts.
Used EVs continue to establish themselves in the used market with Aston Barclay volumes reaching an all-time high in Q1, albeit from a low level, with prices rising to a record £28,060, a rise of 10.5% from Q4.
At the value end of the market the Budget sector (126 months-plus) passed the £2,000 mark at £2,049, despite a major increase in volume in Q1.
Martin Potter, Aston Barclay’s chief customer officer, said: “The fact the new car market was at an all-time low in March 2022 shows that production levels are still a long way away from getting back to normal which in turn creates higher demand for used cars.
“It looks like well into 2023 and beyond before the large order banks will be cleared and the industry will be once again on a level footing.”
He continued: “We believe the demand for used diesels is also likely to make a comeback during Q2 as fuel prices continue to rise.
“The demand for older Budget cars shows no sign of abating as consumer confidence dips after breaking through the £2,000 average price barrier for the first time.”