Summer of ‘unprecedented’ used car prices forecast

Used car prices are going to continue rising at an ‘unprecedented’ rate this summer according to industry experts

Used car forecourt

Used car prices are set to continue rising at an ‘unprecedented’ rate this summer, predict experts monitoring the secondhand car industry.

Prices have already been going up by almost double-digit percentages in recent months, says Philip Nothard, chair of trade body the Vehicle Remarketing Association.

Such healthy price rises are now set to continue into the summer months as experts from Auto Trader, CAP and Cazana warn they have “never seen anything like the current conditions”.

Car buyers are warned dealers are facing a “perfect storm, where stock is in very short supply, demand is high, and buyers are ready to spend freely”.

This is leading to fast-rising prices, cars flying off forecourts quickly… and improved margins for dealers, too.

“There is a general view that dealers could be even braver when it comes to higher pricing,” said Nothard.

That’s if they can get cars, he added: “Many dealers are having so much trouble getting hold of stock that they are retailing almost everything they take in part exchange.”

This means some nearly-new specialists might now happily be selling 10-year old cars.

The current situation, however, cannot continue, adds the VRA.

“At some point, we will see a levelling off of values as supply increases and demand normalises.”

This does not appear to be imminent – but when it does arrive, the industry will need to keep a close eye on any readjustments.

“The danger is that dealers could be left holding stock that is falling rapidly in value – but, so far, there is simply no sign of that occurring.”

ALSO READ

Used car prices have risen for 12 months in a row

Vauxhall, Peugeot and Citroen used cars unite under Spoticar brand

Plans unveiled to close London’s Oxford St to traffic

Related Articles

Richard Aucock
Richard Aucockhttps://www.richardaucock.co.uk/
Richard is director at Motoring Research. He has been with us since 2001, and has been a motoring journalist even longer. He won the IMCO Motoring Writer of the Future Award in 1996 and the acclaimed Sir William Lyons Award in 1998. Both awards are run by the Guild of Motoring Writers and Richard is currently vice chair of the world's largest organisation for automotive media professionals. Richard is also a juror and Steering Committee director for World Car Awards and the UK juror for the AUTOBEST awards.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

New Dacia Spring Cargo is the UK’s cheapest electric van

With prices starting at £14,995 before VAT, the electric Dacia Spring Cargo is aimed at city-based businesses.

Driving away without paying for petrol: what does the law say?

The high cost of petrol means drive-offs are not uncommon. Making Off Without Payment is an offence under the Theft Act 1978, however.

New 2025 e-Vitara is Suzuki’s first electric SUV

The electric Suzuki e-Vitara will go into production in spring 2025, offering affordable prices and genuine 4x4 capability.

One-off Honda Civic has the world’s most silver paint

The unique Honda Civic commemorates 25 years of hybrid engine technology, with special paint that contains real silver.