Used prices overtake some new models
The latest data from Auto Trader found that the average price of a used car increased 23.9% year-on-year last week.
Not only does this mark 76 weeks of consecutive growth, but a fourfold increase on the 5.7% year-on-year recorded during the week of 12 April, when physical forecourts reopened.
The record price growth is continuing to be fuelled by the dramatic increase in consumer demand, while another factor in the surge in prices is the ongoing drop in levels of supply, which were down 12% last week versus 2019. This is down to the shortage of micro-chips and other raw materials, which is directly and dramatically impacting worldwide supply of new cars.
As it stands, 17% of nearly new cars are more expensive than their new equivalents, while 37% of nearly new cars are currently priced within five per cent of their new counterparts.
Data and insights director, Richard Walker, said:“With levels of used car price growth once again smashing previous records, there is a lot of speculation around how long this boom could last. Whilst inflation in itself does pose a potential risk to consumer demand, we don’t expect to see price growth slow anytime soon. This is based on the continued acceleration we’re tracking across the market – fuelled in part by increased levels of household savings, a positive sentiment shift towards car ownership, and the 1.5 million ‘lost’ transactions last year – coupled with the ongoing shortage in both new and used car supply.”
