Dealer part-exchange auction prices rose by more than 60 per cent last year as traders battled for stock, Aston Barclay has said.
The auction group’s research found that prices for part-exchange vehicles increased by up to 62.4 per cent throughout 2021.
The hike was seen across all age bands, with vehicles aged between 55 and 75 months rising from £4,445 to £11,559.
Cars aged between 78 and 125 months went up by 21.6 per cent to £5,615 and vehicles aged over 126 months rose by 24.6 per cent to £1,874.
Aston Barclay says the data reinforces how dealers have had to adjust their stocking and pricing strategy due to new car shortages increasing demand for used cars.
A typical 55-to-75-month-old £8,500 retail car in 2020 became a £13,000 retail car in 2021.
At the budget end of the market, Aston Barclay experienced a 64.3 per cent growth in volumes as many dealers chose to sell older cars rather than retail them, with a car retailing at £1,750 in 2020 becoming a £2,500 retail car in 2021.
Martin Potter, Aston Barclay’s MD – customer, said: ‘Dealers will have to continue to reinvent themselves and their stocking policy in 2022 based on what they can get their hands on and what their local customer base can afford to buy.
‘We must accept prices and demand will remain high and supply will be constrained throughout 2022.’
Potter cites diesels as an area of the market that could provide opportunities for dealers as the used conversation focuses on hybrids and EVs.
Diesels rose to nearly 50 per cent of its Q4 volumes, with wholesale prices rising by £621 to an average of £8,843.
That compares with average Q4 hybrid and EV prices of £18,542 and £25,883 respectively.
He added: ‘Diesels still represent good value for money in the current market and are readily available.
‘While EV prices and sales increased again in Q4, volumes accounted for just 0.5 per cent of our Q4 sales mix.’