Used Car Prices Reach Peak Of 2016 Prices
Used Car Prices In Last Six Months Jumped As High As Could Happen In 5 Years
November was the 20th successive month of used vehicle price increase, showing a high 28.6 per cent boost on a year-on-year and like-for-like basis to achieve a mean value of £17,366.
Auto Trader recently performed an analysis and found the escalation in secondhand car prices in the last six months is equal to what we could have witnessed in the next five years.
The average value of a secondhand vehicle has increased by around £3,400 since May – according to the secondhand price curve between 2017 and May 2021. This much growth we were expecting by April 2026.
The Auto Trader Retail Price Index analysed around 900,000 vehicles and drew this result. Interestingly, the online marketplace also found over a quarter (25.8 per cent) of almost-new cars (up to a year) presently cost in excess of their new equals.
The earlier best was 22.8 per cent, noted in October, and is over six times greater than in January when it stood at four per cent.
The Seat Alhambra (shown above) witnessed the highest year-on-year growth at 49.5 per cent, with an average expected value of £18,918.
Source: Auto Trader
Auto Trader cites the increasing demand for new vehicles with their low availably as the main reason behind this price escalation.
The company also witnessed a massive rise in traffic on its platform with 56.9m visits in November this year, which is a 23 per cent growth compared to November 2019. Moreover, the online marketplace also found people spending more time finding their new pair of wheels – increased by 12 per cent. The survey also revealed that vehicle supplies decreased by nine per cent in November 2021 compared to the same month two years back.
It was also found that used vehicles took fewer days to sell in November – trading 13 per cent quicker than the time two years back at 28 days vs 32 days in November 2019.
Richard Walker, Auto Trader’s director of data and insights, mentioned, “There’s been some suggestion that the period of huge price growth is coming to an end, or we’re finally about to see the ‘bubble burst’.”
“Beyond what we'd expect for this time of year, however, we're seeing absolutely no evidence of that being the case. Although week-on-week price movements may continue to soften over the coming weeks, average prices remain nearly 30 per cent above what they were last year.”
“Looking further ahead, the new and used car supply constraints will last for much of next year, and with the economy set to grow, we can expect to see the very robust levels of consumer demand continue. Simple economics, therefore, point to a continuation of robust price growth well into 2022.”
Source and Pictures: Car Dealer Magazine