Used car prices keep climbing

The average price of used cars increased 18.6% year-on-year in the second week of September.

According to Auto Trader, this marks a 1.2% growth on the previous week and a three-fold increase on the 5.7% year-on-year growth recorded when forecourts reopened.

Consumer demand continues to drive growth, with cars leaving forecourts in an average of 24 days last week, an 11% acceleration on the August average of 27. Another factor in the rise in prices is the ongoing drop in levels of supply, which were down 13.3% last week versus 2019.

Data and insights director Richard Walker said: “After months of continued acceleration, we’re seeing yet another record set for price growth rates fuelled by the unprecedented levels of consumer demand in the market. And whilst inflation, tax rises and the end of furlough do present potential future risks, there are a number of factors which give us confidence, not least the growth in motor transport levels, solid household finances, consumer confidence, and the increased appetite for car ownership seen in particular by the increasing mix of younger car buyers.

“This, coupled with the ongoing supply challenges in both new and used cars, means that we don’t see any reason for this growth to ease significantly anytime soon.”

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