Demand soars for used cars

The used car market has surged since showrooms reopened.

According to cap hpi, average values increased by two per cent, or £275 per vehicle, at a time of year when traditionally values tend to drop.

Head of valuations at cap hpi, Derren Martin, said: “Initially in the first few days of April, values were very stable. Car showrooms reopened on 5 April in Scotland and 12 April in England and consumer demand went through the roof.

“There were reports of consumers queuing at the door before some opened and once they were open, there were large queues outside as showrooms had social distance restrictions in place. Car supermarkets, in particular, experienced hugely increased business levels as the opportunities for consumers to turn up without an appointment and browse around a forecourt were seized upon.”

It would appear that it’s more than normal ‘pent-up’ demand, with increases also being driven by ‘accidental savers’ – those who have saved money due to less socialising, leisure and holidays during Covid-19.

Martin said: “We are expecting demand to continue to be high, whilst supply issues in the new car market, not least because of semiconductor shortages, mean there will be consumers turning to used cars and a lack of part exchanges in the market, demand could well outstrip supply.”