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The average used car price jumped by 15.2 per cent last week, new data shows, fuelling an expected positive period of ‘sustained’ used car demand.
Auto Trader said based on 400,000 cars currently advertised on its platform, week commencing August 9 saw a ‘massive’ 15.2 per cent year-on-year and like-for-like basis.
The latest figures marks 66 weeks of consecutive price growth, but also ‘a huge acceleration’ on the 5.7. per cent increase when forecourts reopened during the week of April 12.
The firm said it had seen more than 15.8m cross platform visits last week – a significant 32 per cent increase on the same week in 2019.
There was also an 18 per cent rise in the hours (2.3m) consumers spent researching their next car on the marketplace.
Auto Trader also said it took an average of 26 days for stock to leave forecourts last week, which is a 10 per cent drop on the April average.
The figures come as Auto Trader research conducted this month revealed that while nearly half (46 per cent) of new car buyers would not be prepared to wait for more than a month for their preferred vehicle, 74 per cent would be open to purchasing a used car alternative if their brand-new choice wasn’t available within their desired time-frame.
Auto Trader’s data and insights director, Richard Walker, said: ‘Used car demand is being fuelled by many factors, not least consumer confidence, low unemployment levels, concerns about safety on public transport, but now also the supply constraints we’re seeing in the new car market.
‘We estimate there are up to 600,000 new car transactions that won’t happen this year because of these constraints, with many consumers looking to used car alternatives.
‘This suggests we can expect a sustained period of positive used car demand.’
Walker added: ‘Based on the incredibly strong metrics we’re observing across the market we anticipate at least eight million used car transactions this year.
‘However, this doesn’t even begin to reclaim the sales we saw lost in 2020 due to the lockdowns; if used car supply remains robust, we’re confident there’s enough used car demand in the market to outperform our predictions.
‘Whilst our forecast is in contrast to the comparatively conservative predictions of other commentators, we have been, and will continue to be, led by data rather than opinion.
‘This would be our advice to retailers: know your market and know your data, and you will be in the best possible position to respond, whatever the market context.’
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.
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I wonder if this will have any affect for scheme users. Higher residuals than expected equals ???
They will remain high because there will be a scarecity of 2021 and 2022 cars appearing on the market in 3 to 5 years time.
They seem to have done a damn good/terrible job of predicting residuals so far, depending on which side of the table you’re on.
Do you think the board might look at the profits and think it’s just a little too much this time? I’m sure we’ll see those higher than expected profits in the form of sensible EV AP pricing for new models.
I was reading a bit of the Half Year Report by Motability Operations performance numbers to March 2021 where they say they devalued their stock by £107 Million because of Covid, Brexit and diesel value reducing resale prices whereas its been the opposite to their predictions.
Another thing I noticed too was a statement that they like to keep at least 200 cars at £0 AP and checking just now the numbers are 174 cars with £0 AP.
Still all things should settle down over the next decade or two.?
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