Used car price growth remains 41.5% ahead of pre-pandemic levels

The typical retail value of a used automobile has grown for the twenty seventh consecutive month, reaching £17,252 in June, up 41.5% on June 2019.

Progress is softening, nevertheless, with costs up by 23.7% year-on-year (YoY), in June, easing from the 28.4% YoY increase recorded in May, and the all-time excessive of 32.2% in April.

Auto Dealer mentioned the easing shouldn’t be seen as a decline in used automobile costs.

Richard Walker, Auto Dealer’s director of information and insights, mentioned: “Though the massive progress in used automobile costs we’ve been monitoring over the previous few years could proceed to melt over the approaching months, there’s definitely no indication in present knowledge that costs are set to tumble.

“That’s as a result of the identical market dynamics that helped gas the document acceleration in progress are nonetheless at play, albeit to a far much less dramatic extent. Regardless of the clear financial headwinds, we stay assured of continued client demand out there, which coupled with ongoing provide challenges in each the brand new and used automobile market, costs will stay robust for the foreseeable future.”

Information from Auto Dealer’s Retail value Index (RPI) reveals common used automobile costs have elevated £3,300 over the past two years, and a large £4,500 within the final three.

The present obvious slowdown in YoY charges of value progress is the results of numerous components, not least the truth that progress is now overlapping final yr’s already very robust ranges – in June 21, costs have been up a then document 11.1% YoY. Additional contributing components embrace a slight YoY softening in client demand. 

Sue Robinson chief govt of the NFDA, added: “Demand for used automobiles from customers stays strong. The availability of fascinating good high quality autos continues to be briefly provide, which continues to maintain car values buoyant.”

Information from eBay Motors reveals sellers’ average days to sell increased by nearly three full days, from 36.7 to 39.5 days, in June as the typical marketed used automobile value on eBay Motors Group’s platforms dropped 1.4% from £16,872 to £16,627, the fifth consecutive month-to-month fall.

Costs for used Suzuki SX4 fashions grew by the most important proportion within the final 12 months, up 82.1% YoY. The Seat Alhambra (+54.5%), Renault Scenic (+46.8%) and Ford Fusion (+44.3%) additionally delivered a powerful efficiency. In contrast, there have been six automobiles that dropped in worth within the final 12 months. They have been the Mitsubishi Shogun Sport (-20.8%), the Mini Roadster (-13.8%), the BMW 8 Collection Gran Coupe (-6.8%) and Coupe (-5.1%), the Audi RS3 (-2.9%) and the Land Rover Discovery 3 (-2.8%).

Evaluation factors to used automobile stability

Though rising inflation and the rising value of residing might but show to be a headwind, the newest Auto Dealer evaluation and client analysis level to ongoing stability within the used automobile market. Whereas common client confidence is in decline, the present financial image is kind of totally different to earlier durations of uncertainty, with present GDP progress, unemployment ranges and rates of interest all in a extra steady place. Family financial savings are nonetheless in extra of the pre-COVID projection, in accordance with the Financial institution of England, and broader retail gross sales stay strong.

Confidence amongst ‘in market’ customers stays robust, Auto Dealer analysis reveals. It discovered that three quarters (75%) of these surveyed in June acknowledged they intend to make a automobile buy within the subsequent six months, which is in keeping with ranges over the past yr.

Separate analysis discovered a minimum of 80% of customers visiting the Auto Dealer market are a minimum of as assured as they have been final yr of their means to afford their subsequent automobile – 41% mentioned they have been extra assured, which is up on the 38% recorded in Could. 

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