Exceptionally strong consumer demand in the market is continuing to fuel record price growth.
That’s the view of Auto Trader which said used car prices rose 15.2% year-on-year on a like-for-like basis last week.
Last week, it took an average of 26 days for stock to leave forecourts, which is a 10% drop on the April average.
Used car demand is being fuelled by supply constraints in the new car market, caused by the semi-conductor shortage.
Auto Trader research conducted this month revealed that whilst nearly half (46%) of new car buyers would not be prepared to wait for more than a month for their preferred vehicle, 74% would be open to purchasing a used car alternative if their brand-new choice wasn’t available within their desired timeframe.
Auto Trader data and insights director, Richard Walker, said: “Used car demand is being fuelled by consumer confidence, low unemployment levels, concerns about safety on public transport and supply constraints in the new car market.
“We estimate there are up to 600,000 new car transactions that won’t happen this year because of these constraints, with many consumers looking to used car alternatives. This suggests we can expect a sustained period of positive used car demand.”