Used car values break new records with limited supplies

Prices of used petrol and diesel reached record highs with demand continuing to exceed supply.

Petrol and diesel used car prices rose to record highs in Q3, while EVs and hybrids stabilised as the industry started to settle down to its new normal according to online used car trader Autorola UK.

Petrol prices rose by 4.4% to £14,206 from Q2 to Q3, while used diesel prices rose by 5.3% to £11,383 during the same period, according to online used car platform Autorola.

Looking at the rise of online used prices since Q1 the increase is even more dramatic with petrol prices rising by 9.4% and diesel prices by 11.3%.

These price levels have never been seen by Autorola in its 15-year history.

Hybrids and EV prices meanwhile have stabilised during 2020, mainly down to consumers considering them expensive when compared with identical petrol and diesel models.

In Q3 average EV prices reached £16,019, just £16 more than in Q1. Hybrids experienced a price fall of £561 in the same period from £16,778 in Q1 to £16,197 in Q3.

“Demand for used cars on our online portal since June has been very strong and there is no sign of it abating,” explained Jon Mitchell, Autorola UK’s group sales director.

“Our stock is gradually starting to rise to nearer 7,000 vehicles based on new part exchanges coming into the market from the 70-plate, but still the market demand exceeds supply.

“It’s interesting to see diesels continue their strong performance in the used market, while environmental power train prices have stabilised after many months of rises,” he added.

Average mileages fell right across the stock Autorola sold in Q3 mainly down to journeys being curtailed during the lockdown, which contributed to the Q3 price rises. But currently Autorola is experiencing demand for used cars irrespective of age and price as dealers buy stock to meet consumer demand.

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