Used car prices continued to skyrocket over the past month, with growth numbers reaching an all-time high.
According to the Auto Trader Price Retail Index, vehicle prices in August were 17.2 percent up on the previous year.
It did so after July saw the biggest increase compared to the previous month, which was 14.1 percent, almost double what it saw in May, which was up a healthy 8.1 percent.
The substantial increase is being driven by an enormous demand for used cars as many people have left the blackout periods with “accidental savings”.
Commuters’ reluctance to use public transport amid the pandemic was also cited as a reason for the market surge, while new car manufacturers faced shortages of a critical semiconductor component that partially disrupted delivery lines.
Since buyers are unwilling to wait long for their new wheels, more people than ever are turning to used cars, which is driving prices up.
Richard Walker, Director of Data and Insight at Auto Trader, said, “To put the price movement in context, average prices rose six percent year over year in August 2020, which was a new record at the time.
“While few could imagine that growth would accelerate nearly three times as fast a year later, we said during the pandemic that we expected continued growth due to strong consumer demand in the market, even as other commentators have predicted a drop in prices. ”
Autotrader recorded 70.2 million cross-platform visits in August, an increase of 36.4 over the same period in 2019.
And Mr. Walker predicted a period of continued interest in the used car market.
“The data still indicate an exceptionally strong demand for used cars, which has been given an extra boost from the ongoing supply shortages in new cars,” he added.
“Based on what we observe, we assume that the growth rate will continue for some time.”
The Jaguar XK saw the biggest price hike, rising 48.3 percent to £ 26,447
The next big winners were the Jeep Grand Cherokee, which rose 34.2 percent to £ 20,704, and the Mazda MX-5, which rose 33.9 percent to £ 13,091.
The analysis is based on the daily prices of around 900,000 vehicles.
