Used car prices on forecourts rose for the 14th consecutive month in May, driven by the growing imbalance of supply and demand in the market.
According to the latest results from the Auto Trader Retail Price Index, which is based on daily pricing analysis of circa 900,000 vehicles, the average price of a used car in May was £13,973: a year-on-year (YoY) and like-for-like increase of 8.1%.
It said while supply fell -18% compared to May 2019, consumer demand rocketed 36%. This means that in demand cars are shifting off forecourts faster.
Last month, it took an average of 23 days for new stock to leave forecourts compared to 29 days in April and 34 days in May 2019.
Auto Trader director of data and insight, Richard Walker, said: “The significant acceleration in retail prices we’re seeing across the market is unprecedented and shows no signs of slowing.
“It is critical that retailers are reacting to the speed in which the market is moving, which means ensuring the whole forecourt is adjusted to market price, and not just new stock.
On Auto Trader, we’re seeing a significant proportion of older advertised stock which is yet to be repriced to reflect the positive movement of the market, which is not only limiting potential margins, but also dragging down consumer-facing valuations which are based on all advertised vehicles on site.”