Used car prices rise for 35th straight month
The average retail value of a used car was £17,654 in February, according to Auto Trader, which represents a 1.3% increase on a year-on-year (YoY) and a like-for-like basis.
While down on last year’s record highs, the 35th month of consecutive growth builds on the 32% YoY growth recorded in February 2022 and means used car values have increased about £4,000 since the start of the pandemic.
Prices have remained robust due to the ongoing demand and supply dynamics in the market.
Auto Trader’s director of data and insight, Richard Walker, said: “The strong level of demand in the market, coupled with the ongoing shortfall in stock fuelled by the dearth in new car supply, is keeping second-hand car prices stable and supporting a healthy and profitable used car market. And with no indication of these dynamics shifting anytime soon, we remain confident for the months ahead.”
He continued: “Given higher prices, lower discounts, and increased borrowing rates, retail demand for new cars softened during the closing months of last year. Reassuringly, however, along with the very positive momentum we’re tracking in the used car market, we’re seeing new car demand begin to pick back up. And so, despite the broader economic headwinds, we fully expect any increase in new car supply over the coming months will be met with healthy levels of consumer appetite. As we have consistently seen over the last few years, where there’s stock, there’s sales.”
