Latest data from Auto Trader has revealed that used car prices remained stable last month.
Average prices actually rose £300 from September to £17,863. Prices have now been neutral or risen for five consecutive months while on a year-on-year and like-for-like basis they are up 5.1% higher than this time last year.
The stability in prices is due to the ongoing demand and supply dynamics in the market. Although consumer demand is softening, levels remain comparatively robust, which coupled with the ongoing squeeze in both new and used car supply, is keeping prices buoyant.
Auto Trader also found that used cars are taking an average of 27 days to sell in November, which is one day faster than last year and four days faster than 2019.
Auto Trader’s Data and Insights Director, Richard Walker said: “The exceptional market dynamics we’ve seen over the course of the pandemic has shifted average prices up dramatically – around 47% on 2019 levels. But whilst we continue to hear reference to a figurative cliff edge, or prices set to collapse, we still see no evidence of it. Based on what we’re tracking across the whole retail market, as well as forward views of supply chains, there’s mothing to suggest anything other than a return to relative normality now that those dynamics have been absorbed and new equilibrium seems to be stabilising.”
