In December 2021, it was predicted that used car prices may never drop to pre-Covid levels again.
In May 2022, Auto Trader data showed the market has seen year-on-year price growth for 26 consecutive months – that’s from March 2020.
The semiconductor shortage continues to impact the new car market heavily, and a new normal for used car pricing really may be a reality. The wider market tends to report that new car shortages are to blame for lower sales figures, and that buyer demand is being ‘thwarted’[i]. But is that the full story?
We’ve looked into the major shifts in the UK used car market in the past 12 months, and pulled out some key points in the infographic below.
We recently noted that buyer intent is shifting toward smaller or cheaper cars due the increased cost of living. It’s reasonable to assume that lower new car buying figures may not just be down to a lack of supply – buyers are having to be more savvy with their money, and the second-hand market lends itself to that. Or at least it does as long as used car prices don’t top new ones.
In February it was reported that one in five second-hand cars in the UK was costing more than its equivalent new model – but this was only for cars a year old. The models seeing the highest value growth included the Toyota Auris hybrid and the Kia Soul electric, again showing demand is moving toward PHEVs and EVs.
How have the shifts in the market of the past 12-24 months affected you? We’d love to hear from you. Send us a message below to share your thoughts.