Robust used car market can withstand Autumn Budget
Auto Trader is predicting that the Autumn Budget will have little impact on the used car market, with consumers making any necessary cuts in other areas.
Although economic indicators remain flat, it found that consumer confidence on its platform held firm in October with average retail prices increasing and selling times coming down.
According to its Retail Price Index, the average price of a used car reached £17,087 in October, which is a 0.4% increase on a year-on-year and marks the third consecutive month of growth after two years of price contractions.
October’s average retail price was also up 0.7% on September.
Growth
It said this growth is being fuelled by strong demand, with used cars selling in 28 days on average in October, which is one day quicker than the same month last year and four days quicker than October 2023.
While there is uncertainty around the Budget, Auto Trader research found that nine in 10 consumers consider owning a car essential, with just 16% saying they will cut back on motoring expenses compared to 40% who say they will eat out less, 29% who will travel less, and 24% who will reduce spending on technology.
Marc Palmer, head of strategy and insights, said:
“Despite a natural slowdown in transactions, we continue to see very robust consumer engagement during the closing months of the year. For retailers, this underscores the importance of maintaining a strong presence and ensuring stock is visible and well-presented online, so they’re well placed to capture this pent-up demand and start the new year with real sales momentum behind them.”
