Rising used car prices show ‘no evidence’ of a slowdown ‘anytime soon’ with costs up £ 3,000
Prices for used gasoline and diesel cars continued to rise in October for the 19th consecutive month, according to the AutoTrader Retail Price Index. The increase was the biggest monthly jump with costs up 21.4 percent in September.
Prices have now risen to a record 25.6% year-on-year in the past year and a half.
The rise means that the average price of a used vehicle has increased by almost Â£ 3,000 in just five months.
Prices for the second-hand have dropped from just Â£ 13,973 in May to Â£ 16,878 in October.
Richard Walker, director of data and insight for AutoTrader, said prices were on the rise due to “unusually strong demand.”
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He added that supply chain problems were also to blame, which is “unlikely” to return soon after a drop in new car sales.
He said: âWhat we are currently seeing in the market is the result of fundamental economic factors – exceptionally strong consumer demand and a limited supply chain that simply cannot catch up.
âGoing forward, demand will continue to be fueled by healthy levels of consumer confidence, a positive shift towards car ownership and the 1.5 million ‘lost’ car sales in 2020.
âIn addition to the fact that we are unlikely to see a strong return to supply levels due to declining new car sales volumes in recent years and lower pre-registration levels,â we can expect strong price growth year over year. continue until next year.
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“Although we may see a slight slowdown from week to week due to typical seasonal patterns, for year-over-year growth to slow to single-digit levels we saw before the pandemic , the levels of supply and demand will have to even out.
âFrom what we see in the marketplace, the wider economy and the hundreds of thousands of daily price observations that we are able to follow in the live retail market, there is everything just no evidence to suggest it will be anytime soon. “
AutoTrader data shows that almost one in four near-new cars is more expensive than its new counterparts.
A total of 22.2 percent of vehicles that have been on the road for up to 12 months cost more than new models.
AutoTrader’s analysis revealed that Land Rover’s Defender 90 had the biggest used price increase.
Costs have risen by over 68%, with the average asking price hitting Â£ 77,577.
The Jaguar XK was also up 45.2% while SEAT’s Alhambra was 41.9% more expensive.