21st successive month of increased used car prices.

Auto Trader data shows December 2021 was the 21st successive month of increased used car prices.

Auto Trader’s newRetail Price Index reveals the growth of 30.5 per cent year-on-year in December 2021.

Calculating daily values of about 900,000 vehicles, the online car trading firm noted that the normal price of secondhand cars stretched to £17,816.

Auto Trader attributes the increased prices of used vehicles to new market dynamics where stocks are limited, and demand is high.

In 2021, the online marketplace witnessed an improvement of 27 per cent in the cross-platform visits evaluated against 2019, with total average hours rising by 20 per cent contrasted to pre-pandemic levels.

Auto Trader also observed a massive surge in the number of secondhand and new vehicle queries at their platform, which improved by eight per cent and 71 per cent separately as contrasted to 2020. The higher demand translated to an improvement in car sales, as well.

In December 2021, a regular secondhand vehicle traded 28 per cent quicker than in December 2020 (32 vs. 41 days).

One in four ‘almost fresh’ vehicles valued more than minted equivalents

Besides a considerable market demand, the higher car values are also attributed to continuing problems in new and secondhand vehicle supply, like the scarcity of semiconductors.

Other than that, in December 2021, the regular expected price of an 'almost new' car (less than one-year-old) improved by a massive 45 per cent measured up against December 2019. The average value of a nearly new vehicle stood at £34,429.

This steep price increase means around a fourth of almost new vehicles were valued more than their new counterparts. On the other hand, one-in-two were priced within five per cent of the new tag price.

Richard Walker, Auto Trader’s director of data and insights, stated,

“2021 was a remarkable year for the automotive industry. Used vehicle pricing saw double-digit growth and used cars flew off the forecourts in record time.”

“Despite ongoing restrictions, our sector has remained resilient in the face of significant challenges and is on track for strong continued price growth well into the second half of the new year.”

“The two main factors fuelling this growth, supply constraints and strong consumer demand, both show no signs of easing anytime soon. Claims of an imminent ‘bubble burst’ are failing to take these key dynamics into account.”

Source: CarDealerMagazine