Car supermarkets ramped up their efforts to boost profitability in November by increasing their inventory levels and prioritising younger vehicles, according to Motors’s Market View.
Average inventory rose to 214 vehicles, the highest level this year and a notable increase from 200 in October. This marked a steady move toward last November’s total of 220.
There was also a clear shift in the age profile of cars stocked, with vehicles under two years old growing from 7% to 12% year-on-year. This came at the expense of older cars, particularly those aged four to six years, which saw their share drop from 38% to 30.5%.
As a result, the average price of vehicles at supermarkets rose 1.2% month-on-month to £17,038. Despite this focus on higher-value stock, the time it took to sell a car softened slightly, with an average of 20.8 days compared to 21.3 days in October.
Demand for used cars remained undeterred by external factors such as the Autumn Budget or the Court of Appeal ruling on finance commission disclosures.
The analysis revealed stability in pricing, retail demand, and stock volumes across the market, with minimal year-on-year fluctuations.
The average used car price was £17,961, showing only a marginal increase of £41 compared to October and £38 compared to November 2023. Similarly, days to sell averaged 30, consistent with October and September figures.
The share of electric and hybrid vehicles in dealer stock continued to grow, reflecting changing consumer preferences. Electric vehicles accounted for 4.5% of stock, up from 3% a year ago, while hybrids rose from 6% to 9%.
This growth came largely at the expense of diesel vehicles, whose share dropped from 37.5% to 34.5%. Petrol cars remained dominant, representing over half of all used vehicles sold by dealers.
The Tesla Model 3 emerged as the fastest-selling car in November, spending an average of just 15 days on dealer forecourts, underscoring the strong demand for high-quality electric vehicles.
With strategic shifts toward younger vehicles and stable consumer demand, the used car market displayed resilience
“While November was characterised by small seasonal adjustments across pricing, demand and stock volumes, our Market View analysis did identify a trend among car supermarkets moving to boost profitability by successfully sourcing and selling younger used cars,” said Lucy Tugby, marketing director of Motors.
“It’s also significant that consumer demand, as measured by online search activity and days to sell, was not negatively impacted by the Autumn Budget or the Court of Appeal’s ruling on dealers now being required to disclose commission on finance sales.
“Furthermore, with the slow uptake of EVs making the headlines in November, we also note how EVs and hybrids now collectively account for 13% of used cars listed by dealers, their highest ever share. Hybrids continue to lead the way with higher volumes and more advert views than EVs, highlighting the vital educating role played by dealers as part of the wider transition to electric,” said Tugby.
