The average price of used cars continues to sky-rocket to never-before-seen highs, latest research shows.
Drivers currently face paying more than £1.50 for a litre petrol for the first time ever, while at the same time second-hand vehicle prices have risen for a 23rd consecutive month.
Used motors are 31.9 per cent more expensive than a year ago, meaning drivers are paying an average of £17,929 for a pre-owned vehicle compared to around £14,000 in the same month of 2021, Auto Trader’s February report reveals.
Used car prices add to the cost of living crisis: The average second-hand motor is now 32% more expensive than it was in February 2021, says Auto Trader
Massive delays for new car deliveries caused by the ongoing shortage of semiconductor chips around the world has seen demand for second-hand motors hit record highs
The figures are based on advertised prices of around 900,000 cars listed on Auto Trader’s website each month – not what buyers have paid for these motors.
The biggest risers tend to be large family cars, especially seven-seat MPV models that are around 50 per cent more expensive than they would have been a year ago.
These are the 10 used cars Auto Trader says have risen most in value in the last 12 months
A Seat Alhambra SUV now costs over £18,800, which is a 56% increase on this time last year
Other notable risers are the Ford S-Max (left), with prices up 53% on average, and the Renault Grand Scenic (right), with values accelerating by more than 48%
This includes the Seat Alhambra (up 56 per cent), Ford S-Max (up 53 per cent) and Renault Grand Scenic (up 48.3 per cent).
Last week, This is Money revealed which of the 10 UK’s most-bought new cars have risen the most in the last 12 months, with Vauxhall’s Astra at the top of the standings ahead of the Ford Focus.
But while prices continue to rise to new records, there are signs that second-hand vehicle values might be showing signs of peaking.
The online marketplace says average sticker prices are only 0.6 percentage points higher than January, which is the lowest monthly increase for almost a year.
Record used car prices: These are the 10 most-bought used cars in Britain in 2021, according to official data. We can exclusively reveal by how much they have gone up in price in the last 12 months due to the shortage of new vehicles
The last time prices were accelerating as slowly month-to-month was April 2021, which was the point at which price growth began to spiral dramatically in response to the global shortage of semiconductor computer chips that have strangled new car outputs since.
The average price of a used car has increased nearly £4,000 compared to 10 months ago, and such is the level of acceleration that the market has recorded five years’ worth of growth in just eight months at the end of 2021.
That said, Auto Trader says this the slowdown in rising prices is not an indication of a market in reverse.
‘Whilst there are potential headwinds, such as growing inflation and the possible impact of the conflict in Ukraine, consumer demand remains robust, as reflected in the 12 per cent increase in the volume of enquiries sent to retailers through the Auto Trader platform last month when compared to February 2021,’ its report said.
‘What’s more, the speed in which used cars are selling has also accelerated significantly, with the average car taking 11 days fewer to leave forecourts in February 2022 when compared to the same period last year (27 days vs 38).
‘Combined with the ongoing pressures on new and used car supply, which the current conflict may constrain even further, these market dynamics will ensure used car prices remain high for some time to come.’
Second-hand car prices are now so high that more than one in five (21 per cent) of nearly new – less than a year old – cars currently available are more expensive than their brand-new equivalents, such is the demand for second-hand motors while new car deliveries are delayed by months.
Richard Walker, Auto Trader’s director of data and insights, said: ‘Any suggestion therefore of a bubble bursting is based on pure speculation, and not the data, which clearly points to very high prices remaining for quite some time to come.’
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