Used car prices climb in March
The average price of used cars was seven per cent up in March compared to the same time last year.
According to data from the Auto Trader Retail Price Index, which is based on analysis of about 900,000 vehicles, the average price of a used car in March was £14,110. That represented the 12th consecutive month of price growth.
The price performance has been fuelled by supply and demand dynamics in the market, particularly the current record levels of consumer demand. In fact, Auto Trader saw 69.7 million cross-platform visits to its marketplace in March, which is the highest ever recorded.
Much of the growth was driven by demand for electric vehicles, which shot up from 18.5% year-on-year in February, to 131.6% last month.
Director of data and insight, Richard Walker, said: “The record demand we’re seeing on our marketplace offers a very positive indication as to what we can expect when in less than a week, retailers across England and Wales will be able to fully reopen their forecourts. Coupled with the fact that used car sales are close to what we would typically see in March, and new car performance has been robust despite the current restrictions, we’re confident of a fast return to health. And, with such strong demand in the market, we anticipate prices will remain buoyant for some time to come, which will continue to benefit retailers’ profit margins.”
