8:37 am, February 3, 2023
Used car prices rose in January as ‘healthy demand’ pushed the values of retail cars up marginally on December.
Auto Trader reports that the average retail price of used car stood at £18,119 last month – up 0.2 per cent on December.
Used car prices are now 2.7 per cent higher than they were 12 months ago.
Auto Trader reports on the prices of cars advertised by dealers on its platform and said January was the 34th month it had seen consecutive price growth.
Trade price experts Cap HPI recently told Car Dealer prices were up 0.1 per cent in January.
Auto Trader says this ‘ongoing stability’ is being driven by ‘robust consumer demand and the on-going squeeze in supply’.
However, Auto Trader has also spotted the trend of falling electric car prices with EVs down -2.1 per cent on December.
That’s in stark contrast to petrol cars, up 0.6 per cent, and diesels, up 0.4 per cent, compared again to December.
Auto Trader’s Richard Walker said: ‘It’s hard to ignore the current political and economic disruption, but based on what we’re tracking, it’s having a very limited impact on the retail market.
‘Crucially, demand for used cars remains robust, which along with the ongoing constraints in supply, is keeping prices stable, and with it, profits healthy.’
Top 10 used cars rising in price
Source: Auto Trader comparing January 2023 prices to January 2022
- Mercedes S Class – up 20.4%
- Hyundai i10 – up 19.7%
- Fiat Panda – up 18.7%
- Fiat Tipo – up 18.6%
- Kia ProCeed – up 18.4%
- Toyota Avensis – up 17.9%
- Renault Scenic – up 17.9%
- Renault Grand Scenic – up 16.9%
- Hyundai ix20 – up 16.8%
- Citroen Berlingo – up 16.6%
Auto Trader said its confidence has also been boosted by the fact consumer visits to its platforms were up 14 per cent last month against January 2022.
It admits that the rate of used car prices is ‘continuing to slow’ but it is still building on used car prices that remain at record highs after the pandemic.
In January 2022, used car prices were up 31.3 per cent compared to the year before. Now, they are 2.7 per cent higher than that.
Auto Trader added: ‘A good indicator of market health is the speed in which used cars are leaving retailers’ forecourts.
‘Our data shows that used cars took an average of 40 days to sell in January, which is just one day slower than last year, but faster than pre-pandemic averages.
‘On average older cars were leaving forecourts the fastest in January, with those aged 10-15 years taking just 35 days, whilst 5-10-year-old-cars took a similarly above market average of 36.
‘The slowest age cohort to sell, however, was 1-3-year-old-cars, which took an average of 47 days.’
Top 10 used cars falling in price
Source: Auto Trader comparing January 2023 prices to January 2022
- Jaguar I-Pace – down 15.6%
- Vauxhall Grandland X – down 12.8%
- Land Rover Discovery 4 – down 11.8%
- Jaguar XK – down 11.1%
- Hyundai ix35 – down 10.9%
- Vauxhall Crossland X – down 10.3%
- Mitsubishi Eclipse Cross – down 10.3%
- Skoda Yeti – down 9.4%
- Mini Paceman – down 9.1%
- Suzuki Vitara – down 9.0%
Auto Trader said its data also shows that 78 per cent of 1,900 in-market car buyers it surveyed in January said they were planning on buying a car in the next six months. Some 27 per cent said they’d do it in the next three.
However, the advertising platform believes more needs to be done to stop the waning interest in used electric cars.
Auto Trader added: ‘As a result of a dramatic acceleration in levels of electric vehicle supply – surging from just two per cent of all used cars advertised on Auto Trader in June, to over six per cent in January – used EV retail values recorded the fifth consecutive month on month decline in January, dropping -2.1 per cent from December.
‘To help correct this trend, and to avoid more than just a small pothole on the road to 2030, more action will be required from both the government and industry.
‘The used EV market will play a vital role in driving mass adoption of electric cars, and unless more consumers are prepared to take a risk with second-hand alternatives, new EV targets will be harder to achieve if retailers lose confidence in their used stock, new models will become increasingly difficult to sell.’
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