11:11 am, February 20, 2023
Used car prices are continuing to rise with yet another month of growth recorded by Auto Trader.
Average retail used car prices have risen 0.7 per cent in February compared to January, says the used car marketplace.
The average price of a used car advertised for sale on the classified advert site now stands at £17,880 – up 1.7 per cent on February 2022.
This annual growth is on top of the huge 32 per cent rise recorded this time last year.
While the rate of used car price growth has fallen back in the last year, there has been no crash in used car prices.
Comparing February prices to January, Auto Trader saw petrol cars go up by 3.3 per cent and diesel by 1.4 per cent.
However, the worrying drop in used electric car prices has continued with average used EV prices down -9.1 per cent.
The drop in electric cars is weighing down the overall used car market performance, said the firm.
Auto Trader is the headline sponsor of Car Dealer Live and will be discussing used car prices and how EV disruptors will effect the market at our event on March 9.
Auto Trader says the health of the used car market is actually ‘continuing to build momentum’ with prices kept high thanks to buoyant demand and restricted used car supply.
The firm has also seen growth in demand and sales with the speed at which used cars leave a showroom dropping to just 25 days – in January, the average was 40 days.
Auto Trader expert Richard Walker said: ‘Over the last few months we’ve been seeing and hearing reassuring signs of a used car market in very robust health.
‘These metrics, along with wider macro-economic bellwethers, such as January’s softening in inflation rates and the increasing optimism for household finances, adds to our confident outlook for the year ahead.’
Commenting on the drop in EV prices, Walker said this was largely down to a ‘huge overbalance’ of supply in the market.
Demand for used EVs has remained pretty stable, says Auto Trader, but at the same time the market has been flooded with electric cars.
For example, the volume of Mercedes EQA models has increased by 823 per cent year-on-year while the number of MG5s is up 918 per cent.
Walker added: ‘What’s happening in used EV prices is a natural consequence of a sudden and sharp increase in supply.
‘Consumer demand has been dampened slightly by high energy prices in the last few months, but contrary to what some reports may suggest, consumer appetite for electric has far from fallen off a cliff.
‘Availability and affordability have been major drivers in the success of some brands in the new EV market, so this increase in stock and the slight reduction in prices may well encourage more used car buyers to make the switch to electric.’
Auto Trader reports prices car dealers advertise their cars for on their platform, and as such are retail prices.
What the trade is paying for used cars and how those prices have been effected in February will be revealed later this week by trade price experts Cap HPI.
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.
