Used car prices remain robust

Used car retail prices are up 3.4% year-on-year (YoY), according to Auto Trader’s Retail Price Index data, with the current average price of a used car now £18,066.

Since reaching a peak in April 2022, the rate of price growth has softened over consecutive months – falling 0.1% from November to December. However, second-hand prices remain solid, with the current rate of growth building on the massive 30.5% YoY recorded in December 2021. Taking a longer-term view, used retail prices are up 45% on pre-pandemic December 2019.

Auto Trader’s director of data and insights Richard Walker, said: “From a political and economic perspective, 2022 can be defined as one of change and instability. But whilst transactions and demand have softened on the record levels we saw at the beginning of the year, used car prices, and the market more broadly, have remained stable, which means we’re entering the new year with momentum behind us.

“Throughout this year, the market has been driven by the levels of supply, more than demand. We’ve consistently seen on our marketplace, that where there’s stock there’s been strong consumer appetite. With neither a crash in demand or a surge in supply in sight, we believe this dynamic will continue into the new year and will help keep prices stable.”