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Used car prices are still going UP despite cost of living crisis

  • Snap look at used car prices so far in November by Auto Trader reveals more growth
  • Despite economic pressures car prices are still holding firm
  • Lack of supply means there will be no ‘cliff edge’ drop for used car prices
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Time 8:13 am, November 21, 2022

Used car prices have actually RISEN so far in November, according to online used car marketplace Auto Trader.

Despite economic pressures and a cost of living crisis, a snap look at used car price trends so far in November shows average prices are up £300.

Auto Trader collects data on nearly a million used cars advertised by car dealers and consumers on its platforms. 


The marketplace says the current average price of a used car is £17,863  – a rise of £300 on October’s advertised prices.

So far this year used car prices have risen 5.1 per cent, but the rate of increase is slowing.

Reports from car dealers are that the used car market is still strong and that many are still struggling to buy cars as supply continues to be an issue.


Mainstream media reports – including one in the Sunday Times yesterday claiming used car prices have ‘gone into reserve’ – are painting a different picture to consumers.

This is fuelling a difference between what consumers think is happening in the used car market compared to what is really happening on the ground.

‘Car buyers think that prices should be dropping like a stone because of the economy, but the reality is it’s still just as hard to get cars and prices are remaining firm,’ said Neil McCue, director of Snows Motor Group.

Auto Trader says its data ‘highlights stability’ in the used car market even against the worrying economic backdrop.

‘On a year-on-year (YoY) and like-for-like basis, average prices this month are up 5.1 per cent on November 2021, during which prices were up a massive 29 per cent on November 2020,’ explained Auto Trader.

‘The stability in prices is due to the ongoing demand and supply dynamics in the market. 

‘Although consumer demand is softening against last year’s record highs, levels remain comparatively robust, which coupled with the ongoing squeeze in both new and used car supply, is keeping prices buoyant. 

‘In addition, there are no imminent signs of significantly higher levels of supply coming into the market to upset those dynamics in the near term.’

New car production is still far lower than it has been in the past and new car sales are nearly a million units down on ‘normal’ times. This means there are far fewer cars in the system and it’s this that is holding prices up.


Auto Trader has also found that despite the cost of living crisis there has been a limited impact on car buying plans.

‘Out of circa 2,000 car buyers, 42 per cent intend to purchase within the next two weeks, which is up from 40 per cent in September, whilst nearly a quarter (24 per cent) intend to purchase within the next three months,’ reported Auto Trader, after surveying buyers.

Auto Trader added that it is important to remember that cars are ‘a fundamental need’ not a ‘discretionary luxury’ – the latter something consumers are likely to cut back on in a recession.

‘The exceptional market dynamics we’ve seen over the course of the pandemic has shifted average prices up dramatically – around 47 per cent on 2019 levels,’ said Auto Trader’s pricing expert Richard Walker.

‘But while we continue to hear reference to a figurative cliff edge, or prices set to collapse, we still see no evidence of it.

‘Based on what we’re tracking across the whole retail market, as well as forward views of supply chains, there’s nothing to suggest anything other than a return to relative normality now that those dynamics have been absorbed and new equilibrium seems to be stabilising.’

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.



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