Used car price rises show ‘no evidence’ of slowing ‘anytime soon’ with costs up by £3,000
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Second-hand petrol and diesel car prices continued to rise in October for the 19th consecutive month, according to AutoTrader’s Retail Price Index. The increase was the largest monthly jump with costs up by 21.4 percent in September.
Prices have now risen a record 25.6 percent on a year-on-year, like-for-like basis over the past year and a half.
The rise means the average price of a second-hand vehicle is up by nearly £3,000 in just five months.
Second-hand prices are up from just £13,973 in May to £16,878 in October.
Richard Walker, AutoTrader’s Director of data and Insight said prices were up due to “exceptionally strong demand”.
He added supply chain issues were also to blame which is “unlikely” to return quickly after a fall in new car sales.
He said: “What we’re currently seeing in the market is the result of basic economics – exceptionally strong consumer demand and a constrained supply chain which simply cannot catch up.
“Looking ahead, demand will continue to be fuelled by healthy levels of consumer confidence, a positive shift towards car ownership, and the 1.5 million ‘lost’ car sales in 2020.
“Add to the fact it’s unlikely we’ll see a strong return on supply levels due to the fall in new car sales volumes over recent years and the lower levels of pre-registration, we can expect strong year-on-year price growth to continue well into next year.
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“Although we may see some slight week-on-week softening as a result of typical season trends, for year-on-year growth to slow to the low single-digit levels we saw pre-pandemic, supply and demand levels will need to even out.
“From what we’re seeing in the market, the wider economy, and the hundreds of thousands of daily price observations we’re able to track across the live retail market, there’s simply no evidence to suggest that will be anytime soon.”
Data from AutoTrader shows nearly one in four nearly new cars are more expensive than their new equivalents.
A total of 22.2 percnet of vehicles which have been on the road for up to 12 months cost more than brand new models.
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