Used car prices to rise into 2022
The continued growth in the used car prices shows no signs of slowing down.
According to data from the Auto Trader Retail Price Index, which is based on daily pricing analysis of about900,000 vehicles, October represented the 19th consecutive month of growth.
It found prices increased by a record 25.6% on a year-on-year and like-for-like basis. It not only marks the largest monthly jump in growth recorded, up from 21.4% in September, but mean the average price of a second-hand car has increased nearly £3,000 in just five
Whilst there may be some slight softening, it’s the likely that used car prices will remain on a similar trajectory into next year.
Richard Walker, director of data and insights, said: “What we’re currently seeing in the market is the result of basic economics – exceptionally strong consumer demand and a constrained supply chain which simply cannot catch up. Looking ahead, demand will continue to be fuelled by healthy levels of consumer confidence, a positive shift towards car ownership, and the 1.5 million ‘lost’ car sales in 2020.
“Add to the fact it’s unlikely we’ll see a strong return on supply levels due to the fall in new car sales volumes over recent years and the lower levels of pre-registration, we can expect strong year-on-year price growth to continue well into next year.”
