Increased cost of living cooling used car market slightly, but high demand remains

Richard Peberdy, UK Head of Automotive, KPMG, said:

“Supply shortages, worsened by the pandemic and Ukraine conflict, have severely limited new car production and used car prices have been soaring like never seen before.  The increasing cost of living is cooling the used car market slightly, but demand still remains high and is likely to continue to until the issues impacting new car production are resolved and more supply enters the used car market.  That is unlikely to be this year.

“With more attractive margins than in the past, automotive businesses have been quick to invest in their used car operations, including considerable investment from online operators.  The challenge in time will be managing inventory levels as prices begin to correct themselves.  But for now demand is greater than supply, including for the emerging used BEV market.”

ENDS.

Media contact:

Steven Reilly-Hii, Media Relations Manager, KPMG LLP, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.