Used car prices continue to surge following dealerships reopening

Used car prices continue to increase as buyers flock to reopened showrooms after lockdown.

Data from online car marketplace Auto Trader found the average price of a used car in April was £14,124, up 7.1 per cent on the same month last year and the 13th consecutive month that prices have gone up.

Furthermore, it is noted that the rate of growth is also increasing, from 7.0 and 6.6 per cent in March and February respectively.

Car Dealer Sold
(Blackball Media)

With dealers reopening last month, Auto Trader reports that demand in the market is up 36 per cent on April 2019, while traffic across the firm’s platforms is also up 36 per cent to almost 70 million visits.

Richard Walker, Auto Trader’s director of data and insight, said: “The levels of demand in the market increased significantly last month, resulting in the already very strong price growth accelerating even further.

“Encouragingly, wider economic factors suggest that these high levels of car buying demand are set to continue for some time. If that’s the case, we’ll need to see supply improve substantially from today’s levels before that dents either the price growth we’re tracking, or the margin opportunities seen by retailers.”

There have been price increases across all fuel types, but electric vehicles have seen the biggest increases. Demand for EVs from mainstream manufacturers was up 242 per cent year-on-year in April, but supply levels only growing 84 per cent drove a price increase of 8.2 per cent.

Demand for petrol and diesel vehicles was up about 60 per cent for each, but with supply down 12 and 24 per cent respectively, driving prices up 5.8 and 9.2 per cent.