Average prices have increased for 17 consecutive months.
James Fossdyke reported on uk.motor1.co.uk website that the growth in the value of used cars has doubled in just three months amid supply shortages in the new car market, according to new data. Figures released by online used car marketplace Auto Trader show the average price of a used car hit £15,288 in August, marking 17 consecutive months of increases.
The Auto Trader data, which is based on analysis of around 900,000 used cars, shows price growth hit an all-time high in August, with a 17.2-percent increase in prices compared with the same month in 2020. That’s more than double the growth recorded in May, when prices were up by more than eight percent.
According to the website, the increases have been fuelled by “massive levels of consumer demand” in light of supply issues impacting the new car market. With a global semiconductor shortage affecting factories’ ability to churn out new vehicles, customers are having to wait longer for new cars, leading some to turn to the used car market.
As a result, the company claims there were 70.2 million cross visits to the site in August, up by 36.4 percent on the same period in 2019. It’s also a record level of demand for the month of August, and the second-highest number of visits ever recorded in a single month. Furthermore, Auto Trader says consumers spent 10 million hours researching cars on the site, which is an 18-percent increase on the same month in 2019.
In Auto Trader’s August consumer sentiment survey, a quarter (25 percent) of the 2,200 buyers quizzed said they planned to buy a used car in the next three months, while 39 percent planned to buy within two weeks. Perhaps more pertinently, 26 percent of those questioned said they thought car ownership is more important than it was before the coronavirus pandemic, while half felt more confident in their ability to afford their next car than they did a year ago, despite rising prices.
See the full artical here: https://uk.motor1.com/news/531113/uk-used-car-prices-double/