Car values ‘precariously high’

A new report has warned that the price of used cars in the UK is ‘precariously high’.

The strategic report was published by The Retail Motor Industry Federation (RMI), the umbrella organisation for franchised dealers (NFDA), independent garages (IGA) and auction houses (NAMA).

It suggested the inflated prices of used cars was having a negative impact on the industry, particularly in the midst of a cost-of-living crisis.

Used car prices have soared since Covid-19 due to a lack of new models entering the market as manufacturers shut down factories for long periods of time, and disruptions to supply further impacted production.

As a result, demand now vastly outstrips supply, which has seen prices soar.

The report said, “The used car market has seen unprecedented growth, driven by a lack of availability in the new car market. This means it is very difficult to find good stock at a viable value leading to sale values that are precariously high in what could be a false market.”