Used car market starts year with a bang as demand fuels record prices
The second-hand automotive market has started 2022 with a bang, as record levels of demand have fuelled the skyrocketing of prices.
Auto Trader’s retail price index has revealed the average price of a used car has surged for the 22nd consecutive month, going up to £18,067 – a 31.3 per cent year-on-year increase on a like-for-like basis.
Even though semiconductor shortages continue to rampage, demand doesn’t seem to ease, as the number of used car enquiries has gone up 31 per cent in the last month.
“The January blues have done little to take the heat out of the used car market, which has started the year in a very strong position,” said Auto Trader’s director of data and insights Richard Walker. “The ongoing squeeze on new and used car supply, combined with exceptionally strong consumer demand has ensured that the record price growth we saw last year has continued into 2022.”
“From what we’re tracking there’s little evidence to suggest that these very unusual market dynamics will change significantly any time soon.”
Within a framework that sees 21 per cent of all used vehicles as more expensive of their brand-new equivalent, volume brands are actually recording the highest year-on-year increase on vehicles below five years old.
While the average price of a second-hand Aston Martin has gone up 11 per cent, car makers such as Ford, Skoda and Suzuki saw their prices fourfold, going up 42, 41 and 39 per cent respectively.