Demand still strong for used cars
The average price of a used car increased 23.7% on a year-on-year (YoY) and like-for-like basis in June, according to the Auto Trader Retail Price Index.
Although it’s the 27th month of consecutive price growth, it marks a further softening in the rate of growth, easing from the 28.4% increase recorded in May, and the all-time high of 32.2% in April.
However, used car prices remain exceptionally strong, having increased £3,300 over the last two years, and a massive £4,500 in the last three. And although increasing inflation and the rising cost of living could yet prove to be a headwind, the latest Auto Trader analysis and consumer research point to ongoing stability in the used car market as a third (32%) of consumers believe car ownership is more important today than it was pre-Covid-19.
Richard Walker, Auto Trader’s director of data and insights, said: “Although the huge growth in used car prices we’ve been tracking over the last few years may continue to soften over the coming months, there’s certainly no indication in current data that prices are set to tumble. That’s because the same market dynamics that helped fuel the record acceleration in growth are still at play, albeit to a far less dramatic extent. Despite the clear economic headwinds, we remain confident of continued consumer demand in the market, which coupled with ongoing supply challenges in both the new and used car market, prices will remain strong for the foreseeable future.”
