Used car prices rise for 34th straight month

The average retail price of a used car was £18,119 in January, marking a 2.7% year-on-year increase on a like-for-like basis and the 34^th month of consecutive price growth.

This is according to the Auto Trader Retail Price Index.

It attributes continued growth to the combination of robust consumer demand, and the ongoing squeeze in supply.

Meanwhile, used EV retail values recorded the fifth consecutive month of decline in January, dropping 2.1% from December. Year-on-year, average electric values have fallen -1.5%.

Auto Trader’s director of data and insight, Richard Walker, said: “It’s hard to ignore the current political and economic disruption, but based on what we’re tracking, it’s having a very limited impact on the retail market. Crucially, demand for used cars remains robust, which along with the ongoing constraints in supply, is keeping prices stable, and with it, profits healthy.

“However, as our data highlights, the market is incredibly nuanced, and fluctuations in supply or demand can have an impact at a very granular level. It’s critical then, that retailers follow the data carefully to ensure the very best possible margin.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), added: “The used car market has entered 2023 with continued resilience, values have remained stable, and demand is buoyant. Franchised and independent dealers selling used car vehicles are looking to the year ahead with optimism after successful trading in January, and there’s little to suggest that there will be any drastic changes to the market any time soon.”