With new car registrations being released on 1st September, many motorists typically see an opportunity to trade in their car for a brand-new reg.
In previous years, this flood of part-exchanges meant that dealerships needed to make room for the additional stock by offering heavy discounts on their older used cars.
And it seems used car buyers are gearing up for bargains in September, with Vertu finding that searches for ‘used car part exchange deals’ have risen by 200% over the last three months as people prepare for the release of new registration plates.
This year, however, buyers may need to adjust their expectations as a pandemic-induced shortage of five- to seven-year-old cars could mean there fewer bargains are available in September.
Daniel Evans, General Manager at Vertu Hyundai Bristol, explains why buyers might not find the usual discounts, as well as how you can still find value in used cars, “September is traditionally seen as the ideal time to secure a bargain on a used car, as dealers make room for the latest plate registrations. This year, however, buyers may not find what they expect.
“The supply of five-to-seven-year-old vehicles is still being affected by the production slowdowns and reduced new car registrations during 2020 and 2021 during the pandemic, meaning there are simply fewer cars of that age available.
“With less stock to clear, dealers are under less pressure to discount, so buyers are unlikely to see the same level of price reductions that have traditionally accompanied the September plate change.”
He added, “That doesn’t mean good value has disappeared altogether. Nearly new vehicles, including ex-demonstrators and one to three-year-old models, continue to offer strong value as supply has recovered. Meanwhile, older used cars registered before 2020 are also more widely available and remain competitively priced.
“These areas of the market haven’t experienced the same supply squeeze, so buyers are more likely to find meaningful discounts and greater choice.
“The impact of the pandemic-related production gap is concentrated on vehicles first registered during 2020 and 2021, which now make up much of today’s five -to seven-year-old used car market. Buyers can quickly identify a vehicle’s registration year by the final two numbers on its number plate.
“Cars registered after production recovered, including 73, 24, 74 and 25 plates from 2023 to 2025, and those registered before 2020, such as 19, 68, 18 and 67 plates, and earlier registrations, are less affected by the shortage.
“These vehicles are where buyers are more likely to find greater choice and negotiate a competitive deal this September.”
