Used prices rise in January

The average price of used cars rose 7.4% on a year-on-year, like-for-like basis in January.

According to the Auto Trader Retail Price Index, the average price rose to £14,155, marking the ninth consecutive month of price growth.

The ongoing strength of pricing has been driven by ongoing supply constraints in the market, as well as the solid levels of consumer demand.

Auto Trader’s director of data and insight, Richard Walker, said: “From what we’re observing in the market, the current lockdown is following very similar patterns to what we saw during November’s. Price growth is strong, retailers are holding firm, and although sales have no doubt been hit in the short term due to the restrictions in place, all lead indicators of consumer demand remain robust.

“Along with the resilience and solid sales performance we’re seeing among our retailer partners, it gives us confidence we’ll see a quick return to health once the restrictions lift. And with the same demand and supply dynamics at play, the data doesn’t suggest any reason for big price corrections or adjustments in the coming months.”

The average price of a used petrol car in January was a 6.9% higher than in January 2020 while diesel recorded growth of 8.8%.

However, while demand for EVs increased 65.6%, a much stronger level of supply in the market meant prices contracted by 0.9%.