The average price of a used car was £17,843 in April, a 1.5% rise on March levels and the largest monthly increase since November 2021.
According to Auto Trader, while used car prices have grown on a year-on-year (YoY) basis for 37 consecutive months, the rate of growth has gradually softened since April 2022, when it had reached its peak of 32.2% YoY.
March saw a reversal of this trend, however, rising from the 1.3% YoY recorded in February, to 2%. This upward trajectory continued into April, with average prices rising 2.7% YoY.
This acceleration in price growth, Auto Trader said, is the result of the ongoing challenges in used car supply (down -8.9% YoY in April) following the huge shortfall in new car production during the pandemic, and the recent strengthening in demand (up 8.3% YoY). This imbalance is not only keeping second-hand car prices stable, but also supporting a healthy and profitable used car market.
Auto Trader’s director of data and insight, Richard Walker, said: “The used car market has had a strong year so far, which is reflected in the record levels of consumer engagement on our marketplace over recent months. Rising used car values has done little to dampen demand and based on what we’re tracking across the market, there’s no indication of it slowing significantly anytime soon.”