Used car prices remain steady
Used cars held their value in March, increasing their value by 2.3% to and average price of £12,843.
However, according to the latest findings from the Auto Trader Retail Price Index, it marks the slowest rate of price growth since August 2017 and follows three consecutive months of gradual easing, falling from 3.1% in January.
In terms of fuel type, prices of both second-hand diesel and petrol cars have experienced a similar trend. With an average sticker price of £14,306 in March, diesel prices continue to increase, however the rate of which has slowed: from a four-year high of 2.9% in January 2019 to 2.2% last month.
Whilst this trend has been limited to quarter one for diesel, it’s been more protracted for petrol, with the rate of growth slowing consistently since December 2017 (7.4%). March’s average sticker price of £11,186 represents a year-on-year increase of just 2.4%; the lowest since January 2017.
However, for three consecutive months the rate of price growth for pure electric vehicles has steadily increased, reaching a significant 9.7% in March and an average price of £22,684.
Karolina Edwards-Smajda, Auto Trader’s commercial product director, said, ‘There’s no question that used car prices remain buoyant, but there is a clear trend emerging of an easing of price growth. At this stage it’s hard to determine whether there is a direct correlation between wider industry challenges, but it is something we’ll keep a close eye on.’
‘The performance in both electric and larger vehicles is further evidence of the opportunity they offer; every other metric highlights the growing appetite amongst car buyers, not to mention their dominance at recent car shows. At a time when retailers are facing ongoing turbulence within the market, it’s vital their popularity is reflected on forecourts.’y
