Used car values peaked in 2021, with December values up 30.5% to £ 17,816.
The performance in December marked the 21st consecutive month of growth according to the Auto Trader Retail Price Index.
The record price growth was driven by very high consumer demand in the market, with one in four “almost new” cars above new car prices
In addition to massive market demand, price growth has also been influenced by ongoing challenges in the supply of new and used cars, including the global shortage of semiconductors.
In December, the average asking price of an “almost new” vehicle (less than 12 months old) rose 45% from the previous two years in December 2019 to an average price of £ 34,429.
Auto Trader said two factors are driving the market. Great demand for new cars due to the shortage of new cars and the fact that the UK’s suggested retail price for a new car is protected.
It added that while demand significantly outstrips supply, new car prices have seen only modest “sticker prices” or MSRP increases.
Richard Walker, Director of Data and Insights for Auto Trader, said, “2021 was a remarkable year for the automotive industry.
“Used car prices have risen in double digits and used cars have flown from the forecourt in record time.
“Despite ongoing restrictions, our sector has remained resilient despite considerable challenges and is on course for strong, sustained price growth well into the second half of the new year.
“The two main drivers driving this growth, supply constraints and strong consumer demand, neither show any signs of easing anytime soon. Claims of impending “bubble burst” do not take into account these key dynamics. “
