In spite of the doom and gloom surrounding car sales, the second-hand market remains resilient, says Auto Trader.
Used car prices are continuing to grow in the UK, although the rate of growth has slowed. An average of 0.8 percent growth is the slowest since 2016. It’s comprised mainly of (slowest-growing) diesel at 0.4 percent and petrol at one percent growth.
Alternative-fuel cars come top with 4.8 percent growth, a sub-sector that includes hybrids and electric cars (the latter up 11.8 percent).
Looking for alternatives
Alternative-fuel vehicles made up eight percent of all fuel-related searches on Auto Trader this month, in spite of being just one percent of pre-owned stock.
Petrol is down to 51 percent of searches, and diesel is down at 41 percent.
“There has been much rhetoric around the strength of the used car market in recent weeks, namely that prices have plummeted however, Auto Trader data tells a different story,” said Karolina Edwards-Smajda, Auto Trader’s director of commercial products.
“Prices are still growing, it’s just that the rate of growth is slower than we’re accustomed to and that we’ve seen in recent months.
“There is a clear trend every year following September and March plate change, resulting in an increase in three-year-old, 60k vehicles. The pre-owned car market has an influx of stock, often as a result of consumers trading in their car for a new one.
“Following the March plate change, the volume of three-year-old cars reaches its peak between March and June. This saturates the market and prices become more competitive – which is what we observed happening in May. This is part of the annual cycle, and it’s a trend we see every year.”