25 June 2024 , 09:00
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Vertu Motors said it has seen a rebound of used vehicle sales as prices begin to stabilise, but warns that incoming rules for zero-emission vehicles could bring further disruption.
The dealership, which operates 189 sales and aftersale sites, announced a boost of 6.7% in its used car sales volume alike-for-like basis in its first quarter ending May 31. Sales of its new cars and Motability vehicles climbed by 6.8% in the same period.
Increased stability was also reported in used car prices which had previously fallen by 10.3% in the final quarter of 2023 due to significant uplift in the preceding years. Vertu noted settling into "more normalised seasonal trends" at the start of this yea, but it voiced caution that stringent targets for car makers to reach specific zero-emissions vehicle (ZEV) sales could agitate the market and potentially hike both new and used car prices again.
The company said: "The Zero Emission Mandate to force the uptake of zero emission vehicles sold in the UK has the potential to create volatility in the new car market." They predicted future disruptions could include a dwindled supply of new petrol and diesel cars and increase used car values for these fuel types.
Last year, Prime Minister Rishi Sunak postponed the ban on sales of new petrol and diesel cars from 2030 to 2035. However, the Government has confirmed that it will still enforce Zero Emission Vehicle (ZEV) sales targets for car manufacturers.
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According to these targets, more than a fifth (22%) of new cars sold by manufacturers in the UK next year must be zero emission, and this figure is set to rise to 80% by 2030. In its most recent update, the AIM-listed company stated that it remains on track to meet its full-year guidance.
This follows results released in May which showed revenue at the dealership increasing to £4.7billion in the year to February 29, up from £4billion the previous year, contributing to a 6.5% increase in pre-tax profits to £34.6million.