Plan B has ‘little impact’ on used-car price growth, data shows

Wednesday, December 15, 2021 11:46 a.m.

The rise in used car prices shows no signs of stopping.

The British government’s Plan B had little impact on consumer demand and car price growth.

According to data from Auto Trader, between December 6 and December 12, used car prices rose 28% year-on-year and on a like-for-like basis, an increase of 26.9% over the same period. period last month.

Fueled by an imbalance between supply and demand, price growth was unaffected by the new restrictions as people made 11.6 million visits to Auto Trader’s marketplace, increasing by 13% the time they spend looking for their next car. The volume of requests also increased by 46% compared to 2019 levels.

“At this time of year, as we rapidly approach Christmas, it is completely normal to see price growth slow from week to week or even month to month,” said Richard Walker, director of data and insights at Auto Trader.

“Far less typical however, are the very high levels of consumer demand we continue to see in the market, which even with the introduction of the government’s plan B measures shows no sign of a downturn. weakening.”

A drop in supply levels caused by shortages of microchips and raw materials is also behind the growth in used cars, Auto Trader added.

“Along with continued constraints in the supply of new and used cars, these market dynamics will keep used car price growth on its current trajectory through 2022,” Walker added. “Any suggestion, therefore, that any recent easing is something beyond a normal seasonal pattern is simply not correct.”

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