Used car price growth eases
The rise in used car values slowed in July, slowing from a 3.2% year-on-year increase in June to 2.8%.
This is according to Auto Traders Used Car Price Index, which found the increase is being fuelled by supply pressures in relation to consumer appetite.
Meanwhile, average prices of electric vehicles continued to contract on a year-on-year basis, with supply growth of 174% outpacing a six per cent rise in consumer demand. The average price of £31,622 is now 20.7% lower than this time last year.
Auto Trader’s director of data and insight, Richard Walker, said:“Average retail prices have been increasing for 40 consecutive months, but since the start of the year we’ve seen a steady acceleration in retail price growth. Although this has slowed slightly, it’s not an indication of a market in reverse, and anyone anticipating a drop in retail prices anytime soon will be sorely disappointed. Despite the economic headwinds, demand remains buoyant, which combined with the ongoing constraints on new and second-hand car supply, will keep retail values stable.
“Increasing used car prices does have the potential to place added pressure on motorists who are already feeling the squeeze on their household finances. However, most car buyers should be insulated if they have a car to sell or to exchange, as it’s not just the price of the car on retailers’ forecourts that are rising, so too is the car on driveways, and in many instances likely to be worth considerably more than expected.”
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “With used EV prices declining and edging increasingly closer to the price range of consumer budgets, the data is starting to show an uptick in demand, opening doors of opportunity for retailers to take advantage of this market.”
