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Manufacturer-backed tactical registrations are rising, and could damage long-term used car values if they continue at the recent rate, according to Indicata UK.
The analysis company said these registrations contributed to sales of sub-12-month-old cars increasing by 39.1% year-on-year in April.
It said a number of nearly-new used cars, in particular EVs, were being registered but failing to be wholesaled, as dealers continued to limit the number of used EVs they were buying to add to their forecourts.
However, it said if the used EV floodgates opened, this could further compromise used values, after EV prices had stabilised so far during 2024.
Indicata said that based on its market days' supply metric figure - derived from dividing the currently available supply of stock by the average daily retail sales rate over the past 45 days - the current level of used EV supply was lower in the UK than in any other European country, at 57 days, versus 40 days for petrol cars, 44 days for diesels, and 45 days for hybrids.
It said the overall average UK used car price fell by 0.71% from April to May, with the market in a healthy state despite an increase in the number of older cars becoming available as companies continued to update their fleets.
Indicata UK head of sales Dean Merritt said: "The used market continues in its healthy state as supply and demand remain finely balanced.
"If the volume of nearly new used cars getting pumped into the market continues to increase it will impact the used values of all cars, not just EVs.
"Used prices are definitely heading back towards pre-Covid levels having fallen by 16% since January 2023."
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