Used car prices have climbed by 18.6 per cent year-on-year, according to new data released by Auto Trader.
Crunching the numbers of all the cars currently advertised on the UK’s largest automotive classified site, the figures for the week commencing September 6 also showed a 1.2 per cent rise in prices on the previous week, and a 5.7 per cent increase on the week of April 12, when car showrooms physically reopened following the lifting of lockdowns.
Auto Trader says prices are being fuelled by the ‘dramatic increase in consumer demand’ and the worldwide supply issues affecting new car production, which is reflected in the time it’s taking for a car to sell on a forecourt. Last week, it took an average of 24 days for a dealer to sell a car, which is three days less than the 27-day August average.
The prices of certain used cars have also risen significantly, with some models jumping in price by almost 50 per cent year-on-year. A Jaguar XK was the model that had increased in price the most, with its average asking price of £27,155 representing a huge 49.6 per cent rise. Used Hyundai i30 prices also jumped by 36.6 per cent to £11,821, followed by the Jeep Grand Cherokee, which was up 34.7 per cent to £21,717.
Auto Trader also says that such is the demand for used cars, that 11 per cent of nearly-new cars aged up to 12 months old are currently more expensive than their brand-new equivalents. For comparison, this figure was four per cent at the start of the year. Nearly-new Land Rover and Subaru models were also priced 30 per cent higher than brand-new models.
Commenting on the research, Auto Trader’s data and insights director, Richard Walker, said: “After months of continued acceleration, we’re seeing yet another record set for price growth rates fuelled by the unprecedented levels of consumer demand in the market.
“And whilst inflation, tax rises and the end of furlough do present potential future risks, there are a number of factors which give us confidence, not least the growth in motor transport levels, solid household finances, consumer confidence, and the increased appetite for car ownership seen in particular by the increasing mix of younger car buyers.
“This, coupled with the ongoing supply challenges in both new and used cars, means that we don’t see any reason for this growth to ease significantly anytime soon.”