Essential information for end of life vehicle dismantling, depollution and recycling

Adam Hewitt
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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.


CD Salvage on factors driving the current salvage vehicle market p two

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