Used car prices rise for 22nd straight month
The latest Auto Trader Retail Price Index has reported that the average price for used cars rose to £18,067 in January.
It was the 22nd consecutive month of price growth and represented a remarkable 31.3% year on year growth on a like-for-like basis.
This massive price growth continues to be fuelled by the unusually large gap between the levels of supply and demand in the market as the global shortage in semi-conductors continues to place pressure on both new and used car supplies.
The Index also found that some retailers are not keeping up with the price rises and as a result missed out on about £125m in potential profit. This equates to an average of over £11,000 per retailer.
Richard Walker, Director of Data and Insights, said: “The January blues have done little to take the heat out of the used car market, which has started the year in a very strong position. The ongoing squeeze on new and used car supply, combined with exceptionally strong consumer demand has ensured that the record price growth we saw last year has continued into 2022. From what we’re tracking there’s little evidence to suggest that these very unusual market dynamics will change significantly any time soon. Simple economics therefore point to a continuation of strong price growth well into the year ahead.”
