Used car prices up for 39th consecutive month

Second-hand car prices are accelerating at their fastest rate in eight months, according to the latest data from the Auto Trader Retail Index.

With an average retail value of £17,756, June marks a year-on-year price growth of 3.2% on a like-for-like basis, and the 39th consecutive month of growth, with the average retail price of a used car increased about £3,900 in that time.

The strength and stability in second-hand retail values is continuing to be driven by the imbalance in market dynamics. Indeed, used car supply was down 4.1% YoY in June, while consumer demand was up 2.3%.

Meanwhile, June marked another month of contraction for electric vehicles, with average retail values falling 19.1%, its sixth consecutive month of decline.

Auto Trader’s director of data and insight, Richard Walker, said: “The used car market has enjoyed a strong first half of the year, with the rise in retail values doing little to dampen consumer demand, which has been reflected in the very strong levels of engagement we’ve seen on our marketplace over recent months. Although the current health of the economy does add a degree of uncertainty for the months ahead, based on what we’re currently tracking across the market, our outlook for the rest of 2023 remains an optimistic one.”