Price growth in the used car market has doubled in the last three months, with growth reaching an all-time high in August, Auto Trader has revealed.
The platforrm attributed the growth to significant levels of consumer demand in the market. This is reflected in the increase in traffic to the site, up 36.4% on the same period in 2019 to 70.2m cross-platform visits.
Go deeper with GlobalData
Auto Trader’s latest consumer sentiment survey, conducted in August, shows that out of circa 2,200 car buyers, 25% intend to buy within the next three months, whilst 39% intend to buy within two weeks. A further 26% of respondents said believing car ownership is more important today than it was pre-Covid, whilst 50% feel more confident in their ability to afford their next car than they did a year ago.
As a result of the market growth, Auto Trader predicts a total of circa 8m used car sales in 2021, which is significantly higher than other commentators.
Richard Walker, Auto Trader’s director of data and insight, said: “To put the price movement into context, in August 2020 average prices were increasing at a rate of 6% year-on-year, which at the time marked a new record.
“Whilst few could have imagined a year later, growth would be accelerating at nearly three times that rate, we’ve said throughout the pandemic that we anticipated sustained levels of growth fuelled by the strong consumer demand in the market, even when other commentators precited a collapse in prices.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLike-for-like prices for both used petrol and diesel cars continue to reach record levels, with the average price of a used petrol car increasing 16.9% year-on-year last month (up from 13.5% in July), while used diesels increased 18.7% (up from 16.2%). Average sticker prices were £13,988 and £15,396 respectively.
Like-for-like prices for both used volume and used premium electric vehicles (EV) recorded positive month-on-month movements last month, with EV volume brands seeing the highest increase amongst all fuel types, rising from 9.6% year-on-year growth in July to 13.2% (£24,056). Used premium EV brand prices remain negative year-on-year, but also saw a positive monthly movement, from -6.3% to -5.5% (£44,794).
