The price of a used car surged 30.5 per cent year-on-year, making December the 21st consecutive month of growth for the second-hand automotive market.
According to Auto Trader’s retail price index, the £17,816 average was driven by mainly by exceptional levels of consumer demand, reflected in the 27 per cent increase in visits to Auto Trader’s marketplace.
Potential customers are also spending more time searching the web for their next car, as the number of enquiries made to retailers in the last year has grown 8 and 71 per cent, for used and new cars respectively.
“Used vehicle pricing saw double-digit growth and used cars flew off the forecourts in record time,” said Auto Trader’s director of data and insights Richard Walker.
“Despite ongoing restrictions, our sector has remained resilient in the face of significant challenges and is on track for strong continued price growth well into the second half of the new year.
“The two main factors fuelling this growth, supply constraints and strong consumer demand, both show no signs of easing anytime soon.”
Data from Close Brothers Motor Finance has revealed that as a result of the peak demand levels around 83 per cent of dealers believe there is not enough stock to meet consumer demand, while 88 per cent say getting stock has become more challenging.
Automotive output has in fact plunged in the last year as a result of supply chain issues. Data from market intelligence group LMC Automotive has revealed that 10 million less vehicles were produced globally in 2021, City A.M. reported. Markets such as the UK plunged to 18
“Covid is impacting supply chains massively, causing global shortages – especially of semiconductors which is likely to affect the sector throughout next year, With an increasingly negative economic backdrop, rising inflation and Covid resurgent home and abroad, the circumstances are the toughest in decades.”