Used car price growth accelerated to 2.3% year-on-year in a market that Auto Trader has asserted is in “robust health”.
The used car marketplace and intelligence provider sad the acceleration in the rate of price growth after 10 months of softening “could not be a clearer barometer of the current market”, which despite the wider economic and political backdrop, is “going from strength to strength”.
Data from the Auto Trader Retail Price Index showed the current average retail price of a used car is £17,720, up 2.3% on a year-on-year (YoY) and like for like basis and 1ppt on the increase recorded in February.
Auto Trader’s director of data and insights Richard Walker said: “As soon as we came out of the quiet festive period, we saw signs of a used car market in very robust health.
“Although growth rates may begin to soften again, with no immediate change expected in the current supply and demand dynamics, anyone predicting a fall in used car prices anytime soon will be disappointed.”
In a mid-month catch-up with AM last week Cap HPI director of valuations Derren Martin said that the market was up 0.4% month-to-date.
Used electric vehicle (EV) values continued their decline at a rate of 3.2% at three years and 30,000 miles, according to Cap HPI’s data, however.
Auto Trader’s data revealed a starker picture, with EV values falling 13% as stock levels surged 261% in March.
As of mid-March EV values averaged £33,060 as the average price of a used petrol (£16,102) and diesel (£16,236) car is up 4.3% and 2.4%, respectively.
According to Auto Trader this can be attributed to a rapid influx of supply.
Used EV supply is up 261% YoY, according to Auto Trader, as the supply of both used petrol and diesel cars is down by over 20% YoY.
Auto Trader’s Retail Price Index said: “Contrary to some reports that consumer interest in EVs is collapsing. On Auto Trader, levels of demand is currently up 47% on the same period last year.”
Vehicles are in an average of 28 days across the segments, according to Auto Trader’s data. This is slower than the near record 25 days in February but matches March 2022.
Auto Trader also asserted that a 20% YoY rise in the number of the volume of cross platform visits to its marketplace, following a 19% uplift in February and 14% in January, indicated that consumer demand remained buoyant, despite the impact of the cost-of-living crisis.
Walker added: “Despite some of the recent reports, it’s clear that consumer demand for EVs remains very robust, so it’s important that we correct the myth that consumers don’t want them and that they don’t work. With the sub-five-year-old EV parc expected to grow 62% this year, we’ll need to work together as an industry to change the narrative and we need to change it fast to avoid more than just a pothole on the road to 2030.
“Encouraging car buyers into used EVs through incentives, marketing and information to demystify them will be critical.”