Auto Trader’s latest data from its own marketplace shows that the average price for a used car grew 28.5% a year-on-year and like-for-like basis, making it the 98th week of consecutive price growth. OK, so this is a tiny bit down from the full 29% YoY growth shown in February, but it’s still going up and up.
A little softening of consumer demand is being seen, but only a little. Various factors are coming in to play on the used car market, including the war in Ukraine, as well as the fact people are also currently looking to book holidays for their first proper summer away for two years.
Auto Trader’s consumer research also shows that, despite rising inflation rates, confidence in affordability remains strong.
Auto Trader’s Data and Insights Director, Richard Walker, said: “Given the headlines over recent weeks, a slight softening in what has been a long period of exceptionally strong consumer demand is to be expected. However, it is not an indication of a market in reverse and anyone anticipating a sudden drop in prices will be disappointed. Despite the potential headwinds, demand remains buoyant, which combined with the ongoing pressures on new and used car supply, which the current conflict in Ukraine may constrain even further, will ensure used car prices remain high for some time to come.
“Increasing used car prices does have the potential to place added pressure on motorists who are already beginning to feel the effect of rising inflation, and the growing pinch at the fuel pumps. However, if you already have a car to sell or to exchange, the impact should be fairly limited, as it’s not just the price of the car on retailers’ forecourts that are increasing, so too is the car on your driveway.”