Auto Trader has made the official announcement that, as inflation hit another record high last month, the average price of a used car on Auto Trader last week reached £20,340. This represents a 29% like-for-like increase on the same period last year, the 93rd consecutive week of price growth and therefore officially the highest price ever for used cars in the UK.
Such is the acceleration in used car prices, says Auto Trader, that the average price of a used car on has increased over £4,200 in just six months; up from £16,096 in mid-August, at which point the rate of growth was almost half of what it is today (15% vs 29%).
Further evidence of this very strong demand is the faster speed at which retailers are selling cars. Last week it took an average of just 26 days for stock to leave forecourts. Although it’s a slight slow-down on the average 25 days recorded in pre-COVID February 2020, it’s 30% faster than the speed of sale recorded in 2021 (37).
Auto Trader’s Data and Insights Director, Richard Walker, commented: “Although inflation will always pose a potential headwind for demand, based on the positive consumer metrics we’re tracking across the retail market, as well as broader economic factors such as the falling unemployment rate and record number of job vacancies, we don’t anticipate any significant easing any time soon. Accordingly, with such strong levels of demand, and no end in sight for the current supply challenges, we can expect the strong year-on-year price growth to continue well into the middle of the year.