Used prices continue upward trend
Used car prices have continued to rise through August. According to Auto Trader, data from 12,500 retailers suggests that prices rose 6.2% in the week commencing 10 August compared to the same period last year.
This is being driven by the strong performance of internal combustion engine (ICE) vehicles, with petrol vehicles recording a like-for-like price increase of 6.9% and diesel prices up 6.3% year-on-year. It marked consecutive price growth of 24 weeks and 13 weeks respectively.
Used cars aged 10-15 years have seen the largest growth so far this month, recording a year-on-year increase of 10.3% last week. Cars aged between five and 10 years old cars were up 9.1% on the same period last year.
Auto Trader’s director of data and insight, Richard Walker, said: “It’s encouraging to see that over two and a half months after forecourts were permitted to reopen, and with stock levels slowly returning to normal, prices have continued to climb. This is a result of the surge in consumer demand which shows no sign of slowing in August. While the majority of auction houses are yet to open their auction halls, online channels are close to pre-Covid-19 capacity levels, which has seen the supply challenges many retailers faced after lockdown easing in recent weeks.
“We’re hearing concerns over the impact economic uncertainty and the end of the government’s furlough scheme may have on the market. However, based on the exceptionally strong consumer metrics we’re observing on our marketplace, we’re confident that used car sales and prices will remain buoyant in the coming weeks.”
