The increase in used car prices shows no sign of stopping and keeps on ‘defying gravity’, according to Auto Trader’s data and insights director Richard Walker.
“To call the second-hand car market buoyant would be an understatement and, with new car supply remaining tight, consumer demand currently shows no sign of wavering,” Walker said.
According to data, in the last week alone, prices have gone up 28.6 on 2021 levels, while December recorded a 30.5 per cent surge year-on-year, becoming the 21st consecutive month of growth for the second-hand automotive market.
Prices have been driven by exceptional levels of consumer demand. Around 49 per cent of UK motorists are planning to buy a car with year, with 18 per cent of them shopping second-hand.
“Despite ongoing restrictions, our sector has remained resilient in the face of significant challenges and is on track for strong continued price growth well into the second half of the new year,” said Walker on 11 January.
Second-hand cars are also behind the current inflation rates, which hit its highest level in almost 30 years, City A.M. reported.
Office for National Statistics (ONS) data reported that, between April and December 2021, the contribution of second-hand vehicles to inflation rose to 0.34 percentage points – the highest ever recorded since 2006.
The pandemic as well as the ongoing supply chain crisis and global semiconductor shortages have all played a part in consumers turning to the used car market, with the latter two showing no signs of easing.
“The two main factors fuelling this growth, supply constraints and strong consumer demand, both show no signs of easing anytime soon,” Walker added.