Used car prices have risen consistently since lockdown began to lift in May – and the rate of growth has accelerated in recent weeks.
Auto Trader says the average price of a used car in early July was 4.4 percent higher than a year ago.
It means the average price has now edged up over the £15,000 mark, standing at £15,025 in early July.
This, Auto Trader says, is down to simple supply and demand: there are more customers than there are used cars in the marketplace, which is pushing prices up.
Surprisingly, it is volume brands – such as Ford and Vauxhall – that are leading the growth, with an 8.2 percent year-on-year increase.
Premium brand prices, in contrast, only grew 2.2 percent.
Prices for older cars also outpaced the average, with motors aged between 10-15 years growing 6.6 percent.
“Used car prices have seen sustained growth for more than 10 weeks and it’s clear this growth is accelerating,” said Auto Trader data director Richard Walker.
“Consumer confidence seems relatively robust too, with 82 percent saying they are ‘as confident’ or ‘more confident’ in being able to afford their next car than they were a year ago.”
Even though auction houses are starting to get back to business, enabling car dealers to restock, Mr Walker said there is no sign of consumer demand tailing off.
The marketplace is therefore encouraging retailers not to reduce prices just yet. Although as the figures show, many have already heeded this and are actually raising used car prices…
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