Used Car Prices Up Again In Jan 2023, And A Look At Top Performing Models
The UK’s automotive industry witnessed a surge in used car prices in January due to the thriving demand that slightly elevated the value of retail cars compared to December.
According to Auto Trader, the median retail price of a secondhand car stood at £18,119 last month, exhibiting a slight increase of 0.2% from the previous month. This growth has now elevated the prices of secondhand cars to 2.7% higher than they were a year ago.
January roared in with yet another milestone for the used car market - a 34th straight month of surging prices! Auto Trader, the trusted source for car advertisements, reported this surge in demand, with consumers eager to get their hands on a set of wheels. Trade price experts Cap HPI have confirmed that this stability in the market is due to the robust consumer appetite and scarcity in supply. The used car market is on fire and doesn't seem to be cooling down anytime soon.
While the used car market is flourishing, with prices on the rise, there's a contrasting trend brewing in the electric car market. December saw a dip of 2.1% in the prices of EVs, a stark contrast to the upward trajectory of petrol and diesel cars, which inched up by 0.6% and 0.4%, respectively. However, the retail market remains steadfast amidst current political and economic turmoil. According to Auto Trader Richard Walker, the healthy demand and persistent supply constraints are maintaining stable prices and guaranteeing profitable returns for dealers.
Top 10 Used Cars Witnessing Price Hike
Source: Auto Trader analysing January 2023 values to January 2022
- Mercedes S Class – up 20.4%
- Hyundai i10 – up 19.7%
- Fiat Panda – up 18.7%
- Fiat Tipo – up 18.6%
- Kia ProCeed – up 18.4%
- Toyota Avensis – up 17.9%
- Renault Scenic – up 17.9%
- Renault Grand Scenic – up 16.9%
- Hyundai ix20 – up 16.8%
- Citroen Berlingo – up 16.6%
Auto Trader exudes confidence, with data indicating that consumer visits to its platforms witnessed a 14% increase last month as compared to January 2022. While acknowledging that the pace of used car pricing continues to decelerate, the company highlights that it still builds upon secondhand vehicle prices that persist at historical highs post the pandemic.
In the previous year, used car values reached new heights, with a staggering increase of 31.3% in January. Although the rate of growth has slowed, the prices still remain 2.7% higher. Auto Trader recognises that the speed at which used cars leave dealerships is a crucial indicator of the market's health and prosperity.
In January, used cars were changing hands at a brisk pace, taking an average of 40 days to sell - only a day slower than the preceding year but much quicker than the pre-pandemic average. The speediest sellers were the vehicles that have seen a decade or more of life on the road, with 10-15-year-old cars moving off the forecourt in just 35 days. Not far behind were cars aged 5-10, which took a slightly brisker-than-average 36 days to find a new home. The slowest to sell, however, were the youngest secondhand vehicles, with those aged 1-3 taking an average of 47 days to be snapped up.
Top 10 Used Cars Declining in Price
Source: Auto Trader analysing January 2023 values to January 2022
- Jaguar I-Pace – down 15.6%
- Vauxhall Grandland X – down 12.8%
- Land Rover Discovery 4 – down 11.8%
- Jaguar XK – down 11.1%
- Hyundai ix35 – down 10.9%
- Vauxhall Crossland X – down 10.3%
- Mitsubishi Eclipse Cross – down 10.3%
- Skoda Yeti – down 9.4%
- Mini Paceman – down 9.1%
- Suzuki Vitara – down 9.0%
Auto Trader disclosed intriguing findings from its survey of 1,900 in-market car buyers in January. It revealed that a staggering 78% of those surveyed were planning to purchase a vehicle within the next half-year. Furthermore, a notable 27% of respondents stated that they intended to make the purchase within the next quarter.
Despite these promising results, the advertising platform believes that additional efforts must be exerted to stem the declining interest in pre-owned electric vehicles.
The analysing firm said: "As a result of a sharp surge in electric vehicle supply - skyrocketing from just two percent of all secondhand vehicles marketed on Auto Trader in June to over six percent in January - used EV retail values experienced the fifth consecutive monthly decline in January, dropping by a substantial -2.1% from the preceding month."
To counteract this trend and prevent more than just a mere speed bump on the path to 2030, both the government and the industry must take decisive action. The pre-owned EV market will play a crucial role in catalyzing widespread adoption of electric vehicles, and unless consumers exhibit a greater willingness to consider secondhand options, new EV targets will become increasingly challenging to achieve if retailers lose confidence in their used inventory. New cars will become more challenging to sell if this trend persists.
Source and Images: Car Dealer Magazine