Auto Trader data reveals strong used car demand
Average retail prices of used cars remained stable in July, according to data released by Auto Trader.
The data, which is based on about 800,000 sale prices, found that models aged one to three years old rose in value by 0.4% month on month, while cars ages three to five years old and five to 10 years old were up 0.2% and 0.1% respectively.
Auto Trader also found that supply of new and older vehicles remains strong, but demand is outstripping available stock in the middle of the market.
Stock levels rose 37% year-on-year for models under a year old, and 13% for those over 10 years old.
Strong used car demand
However, the supply of models aged between one and five years old fell by 18.5% with vehicles aged three to five years old now selling in just 27 days. With this imbalance, Auto Trader estimates that about 8,900 retailers are currently advertising around 63,000 cars below their market average, missing out on a potential £31m in revenues.
Richard Walker, Auto Trader’s data and insights director, said: “With demand continuing to outpace supply, prices should continue to stabilise over the coming months, slowly rising in line with seasonal norms.
“Critically, there’s no sign of a drop in either consumer demand or confidence, which will be further boosted by the cut in interest rates that will build on the economic benefits of increased political stability. There’s room for optimism then as we look ahead and it’s why we’re confident in predicting a five per cent rise in transactions by the end of the year.”
