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CD Salvage on factors driving the current salvage vehicle market

Record market conditions are set to continue into 2022

Julie Carter, operations manager at CD Salvage, looks at the factors driving the current market for salvage vehicles.


CD Salvage on factors driving the current salvage vehicle market p
Julie Carter

The salvage sector is facing a perfect storm where supply is restricted due to the pandemic, and more recently the global microchip challenge, while demand is at record levels. The result is that sale values year to date in 2021 are 43.8% higher than the same period in 2019.

The leap in values is even higher for category S vehicles, which saw a 56.4% increase and categories N and B had rises of 53.5% and 50.5%, respectively.

Demand is certainly increasing, and CD Salvage has seen an influx of new buyers to the online auction and Salvage Remarketplace platforms. Conversion rates for sales have remained at record levels throughout the year.

Supply has faced constrictions throughout 2021, and this looks set to continue well into 2022 as the economy gradually returns to normal. Travel restrictions and home working have seen daily rental companies reduce the size of their fleets. When coupled with fewer miles driven by motorists through various lockdowns and restrictions, and the knock-on effect is fewer cars in the salvage market just as demand spikes.

Sixt recently confirmed to a global news channel that its latest figures show that for Q1 of 2021, it had 93,200 cars globally compared to 130,900 in Q1 of 2020 – a 29% decrease in vehicles, year on year.

While according to the latest figures produced by the Society of Motor Manufacturers and Traders, 186,128 cars were registered in June 2021, a 28.0% increase on the same month last year. It’s a trend that is building through the year, with orders continuing to improve. Up to the end of June, 909,973 cars were registered, which is up 39.2% on the same period last year, but down 26.8% compared to the 10-year average of 1,242,944.

As the new car supply issues begin to resolve themselves, we can expect pressure on the used market to ease at the same time that supply will start to return to 2019 levels. The result will be a normalisation of values in the early part of next year.

The team at CD Salvage has worked hard to expand the number of vendors over the last 12 months, and this has enabled the expansion of digital sales and the creation of new platforms in Salvage Remarketplace. The aim is to help buyers source the stock they need to operate.

There is also a trend with more retail dealers sourcing salvage stock to repair and sell to the public to fill forecourts that are struggling for stock.

It’s an overused phrase in recent times, but the current market is unprecedented, and while it’s likely that change is just around the corner, it’s important for buyers to consider a wide range of sources for stock. CD Salvage continues to invest in building relationships with vendors and creating digital platforms to purchase stock quickly and easily.


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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

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