Used car prices remain stable
Used car prices remained almost neutral this month, with the average price at £12,763. This is according to the Auto Trader Retail Price Index.
When looking at this data on a more granular level, it’s cars up to five years old which are responsible for slowing down overall growth.
Meanwhile, although the average price of a used car is only just increasing by 0.1%, the price growth for diesel is now in decline, at 0.5%, recording an average price of £14,123. Petrol remains in the black with 0.2% price growth and average prices remaining steady at £11,169.
However, price growth for alternatively fuelled vehicles (AFVs) continues to grow apace with 4.9% year-on-year price growth and an average price of £21,759. Electric vehicles are driving the price growth at 11.2% and the average price continues to rise to unprecedented levels: £24,985 up from £23,771 last month.
Karolina Edwards-Smajda, director of commercial products at Auto Trader, said, ‘Used car prices are trending towards a neutral rate, and it would not be surprising if we started to see negative figures. This is likely to be driven by several factors impacting consumers; Brexit and the ongoing confusion – not helped by the change in Prime Minister – and the mixed messaging around alternatively fuelled vehicles. It cannot be denied that over recent months we have continued to see price growth increase which is not sustainable. Right now, the demand isn’t as strong as we have seen previously but supply is and as such, prices have adjusted accordingly.’
