Unbelievable Demand And Lack Of New Cars Pushing Up Used Car Prices
Wednesday, 11. August 2021
Used car values continue to outstrip expectations by a significant margin, with the market expected to remain bouyant over the coming months.
Figures from Cap HPI, published earlier this month, showed that, on average, trade prices for used cars have increased by £1,700 or 13.5% in the past three months.
Now, new data from BCA shows that average used car values at the auction house rose above £9,000 for the first time on record in June.
It reports average used car values rose by £835 month-on-month, equivalent to a 10% increase and averaging around 3% ahead of guide values.
The acceleration of price rises had showed some signs of easing towards the end of June, but the July market has continued the trend of steady improvements seen over the past few months.
Stuart Pearson, chief operating officer, said: “There is no doubt that the used car sector has seen some exceptional price movements this year, in the main fuelled by extraordinary levels of demand for the right vehicles.”
He continued: “Whilst there will always be some nervousness in a market that continues to rise, based on BCA’s current intelligence, it would seem highly unlikely that any significant changes will occur over the next few months.”
Premium used cars most in demand
Aston Barclay has revealed its latest Used Car Desirability Index for July, which highlights premium SUVs and used sports cars are the most in-demand stock across both its physical and online auction channels.
Its data takes into consideration three key metrics: web views prior to sale, number of physical and online bids per sale, and the sale price achieved as a percentage of CAP average.
The BMW 7-series and BMW M4 tied for first place with the Mercedes S-Class and Range Rover Velar close behind.
This is the first month where no full electric cars have made the top 25, previously Tesla had made the June list, while the Lexus NX was the only hybrid on the list.
In July, 19 out of the top 25 places were taken up by BMW, Mercedes-Benz, Volvo, Jaguar, Range Rover and Lexus. Higher end SUVs and sports cars are most sought after, as the new car supply challenges caused by the semiconductor shortage have increased used car demand.
The Fiat 500C, the Suzuki Jimny and the Skoda Yeti reflects the high demand at the lower price end of the market for cars that are in short supply.
Martin Potter, Aston Barclay’s managing director – customer, said: “Our latest index highlights the current demand for premium vehicles.
“At this end of the market consumers do not want to wait long periods for a new car to arrive so they have switched their attention to the used market to source their next car. This has meant many dealers are competing for the same make and model of car which continues to push up prices.” By Graham Hill thanks to Fleet News
