2:18 pm, March 3, 2021
The average price of a used car rose again in February – for the 11th month in a row – pointing to growing demand among buyers.
Auto Trader data has revealed that used car prices are now 6.6 per cent higher than they were a year ago.
In February prices averaged £14,096 across 900,000 used cars that Auto Trader collected data from.
Auto Trader data also shows that car dealers are operating at far higher levels than they were in January – with most achieving 80 per cent of normal volumes.
In January, when the third lockdown was first announced, dealers were achieving 65 per cent of normal numbers.
The used car prices are more positive than those revealed by CAP HPI earlier this week who noted a fall of around 1.5 per cent in used car prices across the three-year point.
CAP HPI says its data suggests used car prices have fallen 9.4 per cent since October, or around £950.
Cap HPI head of valuations Derren Martin said: ‘It would be easy to look at this headline figure and suggest that the used car market is struggling, but that is definitely not the case.
‘The average drops of almost 10 per cent were preceded by a period of six months where average prices increased. We believed a realignment was always likely.’
Auto Trader’s visitor numbers point to a large number of used car buyers looking for new vehicles.
Visitor numbers to Auto Trader are up 32.9 per cent on the same period in 2020 with average daily users topping 1.4m.
Richard Walker, Auto Trader director of data and insight, said: ‘This sustained level of price growth, coupled with the strong consumer metrics we’re recording on our marketplace, gives us cause for optimism of very strong retail demand once forecourts are able to physically reopen next month.
‘Add to the mix growing economic confidence, as well as the current operating performance of most retailers, we believe there’s good reason for a positive outlook for the weeks ahead.’
On a more detailed level, the average price of a used petrol vehicle was £12,731 in February which was up 5.8 per cent on the same time last year.
Despite the fact demand was down, used diesel prices remained strong with a stronger price rise tha petrol at 8.4 per cent up on the same time last year.
