Used car values have risen for the 29th month in a row, quashing fears of a crash in prices.
Auto Trader’s monthly retail price index – which is based on daily pricing analysis of around 900,000 vehicles – showed that used car prices rose by 15.6 per cent year-on-year in August to reach an average of £17,039.
Prices also showed a modest increase on a month-on-month basis, rising by 0.3 per cent from July to August. Auto Trader says that this is consistent with previous yearly patterns.
Richard Walker, Auto Trader’s Director of Data and Insights, said: “We’ve seen a number of misleading comments recently suggesting that the market is in a steep decline, prices are on the verge of crashing, or consumer demand has plummeted, but these are either based on insufficient data or a simple misinterpretation.
“Similar predictions have been made since the very beginning of the pandemic, but as we’ve said throughout, the data simply doesn’t support any of this sensationalist speculation.”
Though year-on-year growth is slightly falling from its all-time high of 32.2 per cent recorded in April 2022, Auto Trader says that this is to be ‘expected’ as a result of the market overlapping 2022’s ‘exceptionally strong levels of growth’.
Consumer demand is seeing a similarly modest decline, with data from Auto Trader showing that the volume of advert views on its website had dipped by 11 per cent year-on-year, but when compared to pre-pandemic 2019, they’re up by 19 per cent.
Walker added: “Although there are clear potential headwinds, consumer demand remains stable, and fuelled by the circa four million new and used car transactions ‘lost’ since 2020, as well as a range of other macro-economic factors, we’re confident levels will be sustained. Coupled with ongoing supply challenges, these market dynamics will continue to keep prices strong for the foreseeable future.”