8:12 am, January 19, 2023
Used car prices remained largely stable last year in the face of consistent economic uncertainty.
That is the view of eBay Motors Group which has released its latest Market View report, analysing prices throughout 2022.
The data found that prices began the year at the highest level ever tracked by the company, with the average cost of a used car on Motors.co.uk standing at £18,155.
By the end of the year, that figure had dropped by 0.5 per cent – or £91 – to reach £18,064.
Although prices dipped from February to a low of £16,710 in July, there was a recovery in the second half of 2022 which saw prices stabilise.
Among the cars to grow rise the most in value were models aged up to two years, which increased from £29,803 in January to £32,899 in December – a rise £3,096.
Meanwhile price rises for older cars slowed down with two to five-year-old models up three per cent and five to ten-year-olds dipping by one per cent.
Analysts also found evidence of how the cost-of-living crisis affected buyers, with data suggesting serious concerns over profitability.
As a result, searches on Motors.co.uk for older and cheaper cars rose significantly throughout the year.
Cars aged over six years accounted for just 41 per cent of views in July 2019 but rose to nearly three-quarters (74 per cent) of all views in December 2022.
Likewise, views for cars priced under £5,000 and those in the £5,000 to £10,000 bracket, jumped 20 per cent over the last 18 months. Online views of cars priced £10,000-£20,000 dropped fell 19 per cent in the same period.
Despite the impact of high prices and reduced consumer confidence, the time between cars being listed and sold remained stable in 2022.
The average days to sell in December reduced across all dealer sectors year-on-year from 41 to 39 days, while stock levels rose from 53 to 59 units.
Phill Jones, Chief Operating Officer of eBay Motors Group, said: ‘Used cars are significantly more expensive than they were, with our data showing an average rise of £3,570 in the last 18 months.
‘As a result, an affordability gap has emerged with younger profile cars now out of reach for many buyers, which has pushed more eyeballs to older and cheaper cars,” he said.
‘However, we know from our consumer research that half of car buyers expect to pay more for their next car.
‘This opens up opportunities for dealers to talk about total cost of ownership and monthly finance options, as well as promote the benefits of extended warranty cover to reduce the risk of costly repairs.
‘More than ever customers need a helping hand to find the right car for their circumstances and that’s an opportunity for all dealers.’
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
