Retail Price Index reveals mixed fuel type fortunes
Average used car prices were £17,299 in September, according to the latest Auto Trader Retail Price Index.
Average prices fell one per cent year-on-year on a like-for-like basis and 0.8% month-on-month.
Across the market, used cars sold in an average of 29 days, which is the same as a year ago and one day faster than August.
However, further analysis revealed significant divergence between fuel types. Used electric vehicles recorded their fifth consecutive month of like-for-like price growth, rising 2.8% year-on-year to an average £25,091, while average diesel prices fell 0.8% to £13,924 and petrol prices were down one per cent to 14,625.
In terms of age categories, cars under one fell 2.7%, those aged one to three were down 2.4%, and those between three and five saw prices decrease one per cent. This compares to a 5.6% rise in average prices for cars aged 10–15 years.
Marc Palmer, head of strategy and insights at Auto Trader, said: “September highlights just how important it is to look beneath the market averages. Overall prices have softened, but different cars are experiencing very different dynamics.
“Demand for electric cars is comfortably outpacing supply, supporting continued price growth, while record fuel costs are adding pressure to traditionally fuelled cars, particularly diesel. That variation also underlines why retailers should look at what’s happening in the live retail market rather than being guided by movements in trade values alone.
“Cars are still selling quickly and there are clear pockets of pricing strength, so for retailers sourcing well in a softer wholesale market, there remain opportunities to protect margin by pricing individual vehicles to real-time retail demand.”
