Used car market undisturbed by economic turbulence
Consumer demand for used vehicles has remained largely unaffected by the economic uncertainty.
This is according to data from Auto Trader, which found the volume of advert views on its marketplace was up a massive 17% in September compared to pre-pandemic levels.
With demand strong, it reported that the average price of a used car increased 11.2% in the month on a year-on-year (YoY) and like for like basis, marking the 30th month of consecutive price growth.
Meanwhile, the data also revealed that used cars took an average of just 26 days to sell in September, two days faster than in August.
Auto Trader’s director of data and insights, Richard Walker, said: “It seems almost every week the market is having to contend with another potential headwind, most recently the Chancellor’s not so mini budget. And as we’ve seen following other recent economic disruptors, some have been quick to suggest it’ll be the straw that breaks the camel’s back.
“However, we’re simply not seeing any sign of it, with levels of consumer demand, intent, and budgets all remaining stable.
““To understand the current and future health of the market, it’s important to look beyond the headlines and assess the data for the true picture. Whilst the used car market won’t be immune to these macro changes, including the potential impact of rising interest rates on finance deals, there are a range of factors unique to the automotive market, which we believe will continue to insulate it from broader economic disruption and continue to fuel sustained levels of demand, and with it strong used car prices.”
