According to industry updates, used car prices continue to rise and now the average price for a second-hand vehicle is 27% higher than last year.
The 80th consecutive week of rising used prices was last week. Record fuel prices and the price of secondhand motors were major contributors to October’s inflation reaching 4.2 percent, its highest level in a decade.
The average price of a second-hand car is now £19,776. In the week commencing 9 November 2020, the average price was £15,033, according to Auto Trader.
And that’s nothing on the biggest model riser, with the average advertised values for Land Rover Defender 90s more than doubling in the last year to a massive £79,000.
The inflated prices of used cars’shown no signs of easing’. Average second-hand car prices are 27% more than last year, while used Land Rover Defender 90s cost 104% less than November 2020.
According to the online portal, year-on-year price growth for used cars has increased fourfold in six months. This is up from 6.8% in May 2021 and shows no sign of slowing down.
Unprecedented consumer demand combined with a decrease in used stock has led to a dramatic increase in second-hand car prices.
Due to limited availability of semiconductor chips, shortages of new cars have prompted a rising number of motorists into the used market. This has in turn led to shrinking pre-owned vehicle inventories.
| Ranking | Do it! | Modell | Average asking price | Price changes |
|---|---|---|---|---|
| 1 | Land Rover | Defender 90 | £79,022 | 104.2% |
| 2 | Sit | Alhambra | £19,106 | 49.2% |
| 3 | Peugeot | 207 CC | £3,331 | 46.8% |
| 4 | Ford | The Focus | £15,149 | 44.2% |
| 5 | Renault | Grand Scenic | £9,423 | 43.9% |
| 6 | Land Rover | Defender 110 | £79,800 | 43.6% |
| 7 | Skoda | Yeti | £12,268 | 43.5% |
| 8 | Jaguar | XK | £29,101 | 42.8% |
| 9 | Skoda | Octavia | £16,233 | 42.0% |
| 10 | Ford | S-Max | £13,546 | 41.3% |
| 11 | Toyota | Yaris | £12,755 | 40.6% |
| 12 | Peugeot | Rifter | £22,603 | 40.5% |
| 13 | Ford | Kuga | £19,904 | 39.7% |
| 14 | Hyundai | i30 | £13,582 | 39.0% |
| 15 | Vauxhall | Zafira Tourer | £11,799 | 38.4% |
| 16 | Ford | Grand C-Max | £11,473 | 38.1% |
| =17 | Kia | Sorento | £20,801 | 37.1% |
| =17 | Ford | EcoSport | £15,773 | 37.1% |
| =19 | Vauxhall | Cascada | £10,575 | 37.0% |
| =19 | Peugeot | 2008 | £15,556 | 37.0% |
| Source: Auto Trader | ||||
According to Auto Trader, the number of second-hand motors for sale is actually 8 percent less than in the same week last year.
It is the most popular second-hand car platform in America, and traffic numbers are 27% higher than two years ago. Additionally, users spend 14% more time looking for deals.
This is further evidence that there’s a high demand for cars.
Stocks took on average 27 days to reach the forecourts last week.
Although it’s a slight slow-down on the October average of 24 days, which is a typical season trend, it’s 16 per cent faster than the speed of sale recorded in 2019 (32 days).
Sellers and retailers are profiting from the unprecedented rise in demand. Prices for some models have been dramatically increased by the current environment of car purchasing.
It is true for Land Rover Defenders, in particular the three-door, ’90’ models with short wheelbases.
Since January 2016 when production was halted, the 4X4 of previous generations has been highly in demand. The new model however is extremely popular and waiting times are between 9-12 months.
Advertised prices have been hiked by 104.2 per cent in the last 12 months, with buyers expected to pay an average of £79,022 to get their hands on one.
From new, prices for the Defender 90 start from £59,000.
Order new today and a range-topping five-litre V8 ‘Carpathian Edition’ will cost £106,090 – yet a number of used examples on Auto Trader are being offered in the region of £150,000.
A top-of-the-range Defender 90 Carpathian Edition costs £106,000 new. Used examples are listed online for up to £150,000 today
The five-door 110 version is experiencing similar used premiums, with the average used model advertised for £79,800 – up 43.6 per cent on a year ago.
A lot of popular cars, such as the Ford Focus, Skoda Octavia or Toyota Yaris, are experiencing huge increases in their used values of more than 40% annually.
‘To see such a huge increase in car prices in such a short period of time is truly remarkable and is indicative of the current perfect storm of exceptionally high levels of consumer demand coupled with very constrained new and used supply channels,’ explained Auto Trader’s data and insights director, Richard Walker.
‘Although inflation will always pose a threat to demand, based on the positive consumer metrics we’re tracking across the retail market, as well as broader economic factors such as the record number of job vacancies reported just this week, we don’t anticipate any significant easing beyond normal seasonal trends.
“Accordingly with strong demand and no end in view for current supply problems, we can expect strong year-on year price growth to continue into next year.”
MOTORING: SAVE MONEY
