Used car values may not return to pre-pandemic levels, Cox finds

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sed car values may never return to pre-pandemic levels, on a count of the rapid acceleration of online and digital channels setting a new benchmark for vehicle values.

This is according to Cox Automotive’s latest market tracker, which predicted that wholesale vehicle values will show signs of stabilisation throughout mid-2022.

Philip Nothard, director of strategy and insight at Cox Automotive, warned that there is no tsunami of used stock on the horizon, and an increased focus on the detail will be required as the shape of the market evolves.

Nothard also stated that it can’t be ignored that around 1.4m new vehicles have been lost from the market, which will never enter the used vehicle parc. Although the impact in the sub-12-month market has been felt already, it will without a doubt have a bearing on the sector for years to come.

Last month’s average first-time conversion decreased by 6% to 82.9% month-on-month. Similarly, CAP Clean experienced a marginal month-on-month fall of 2.3%, to 97.3%. This easing resulted in a lowering of both the average age and mileage of vehicles observed through the Manheim lanes.

Writing in Cox Automotive’s AutoFocus Q4 magazine in December, Nothard said: “Back in July, we asserted that the used car market has never been more critical to the overall health of the automotive industry than it has been in 2021. The last few months have given more weight to this suggestion.”