The average price of a used car increased four percent in 2020, significantly up on modest growth of 0.5 percent in 2019.
The figures from Auto Trader show how growing consumer demand caused by the coronavirus crisis has strengthened the used car sector.
Indeed, prices increased for nine months in a row following the first lockdown, and went up by more than eight percent in December 2020 alone.
Auto Trader says it is driven by motorists looking to avoid public transport and remain Covid-secure.
The strong December performance comes despite tighter restrictions, and Auto Trader says there’s early evidence January demand will remain robust, despite the imposition of a third lockdown.
“We have every reason for optimism that prices will remain strong in Q1,” said Auto Trader data director Richard Walker.
Demand for EVs ‘exceptionally strong’
The marketplace says demand for used petrol and diesel cars is consistent, but there are currently “exceptionally strong levels of demand” for electric vehicles.
Demand for premium EVs has risen more than 80 percent – but supply has more than outpaced this, with upmarket electric car availability increasing a staggering 224 percent.
This means average prices actually decreased slightly, but they still remain heady, at over £46,000.
Demand for volume electric vehicles grew 58.7 percent, but there was a much smaller improvement in supply – which means prices actually grew 16.2 percent to over £19,000.
This means electric cars, even used ones, remain unaffordable for many motorists, further delaying their mainstream rollout.
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