Used car prices have skyrocketed around the same time the UK’s inflation rates have reached record highs.
Data from Auto Trader’s marketplace have revealed that last week the average prices for a used vehicle went up 26.9 per cent year-on-year, reaching almost £20,000.
Fuelled by massive levels of consumer demand and supply chain issues, last week’s hike marked the 80th consecutive week of price growth as well as an almost four-fold increase since May.
“To see such a huge increase in car prices in such a short period of time is truly remarkable and is indicative of the current perfect storm of exceptionally high levels of consumer demand coupled with very constrained new and used supply channels,” Auto Trader’s data and insights director Richard Walker said.
“Although inflation will always pose a threat to demand, based on the positive consumer metrics we’re tracking across the retail market, as well as broader economic factors such as the record number of job vacancies reported just this week, we don’t anticipate any significant easing beyond normal seasonal trends.”
Despite the current inflation rates – which have jumped up 4.2 per cent, establishing a 10-year record – buyers continue to want to purchase vehicles.
Out of 1,100 car buyers, 43 per cent said said they intended to buy a car within two weeks, a 2 per cent increase from September, while 44 per cent feel more confident in their ability to afford a car compared to a year ago.