UK Used Car Price Rise “Expected To Continue”, Auto Trader Says
The record price growth currently seen in the used car market is expected to continue over the next few months, according to online marketplace Auto Trader. The popular website says the average used car price rose 15.2% year-on-year earlier this month, and the increases show no sign of stopping.
Auto Trader claims to have seen more than 15.8 million people visit its site in the week starting August 9, an increase of almost a third (32%) from the equivalent week in 2019, before the coronavirus pandemic does not strike. The company also claims that there has been an 18% increase in the hours customers spend researching vehicles on the Auto Trader site from pre-pandemic levels, while the number of leads sent to sellers has increased. increased by 68%.
According to Auto Trader, this already “exceptional” level of demand for used cars has also been boosted by the supply issues plaguing the new car market. As automakers struggle to produce cars during a global semiconductor shortage, Auto Trader says future buyers of new cars are venturing into the used market.
The company says a study conducted earlier this month found that nearly half (46%) of new car buyers wouldn’t be willing to wait longer than a month for their favorite vehicle. And 74% of those surveyed would be willing to buy a second-hand alternative if their brand new choice wasn’t available within the desired time frame.
With Auto Trader’s forecast suggesting that demand will exceed supply by around 600,000 cars this year, the company expects inflated used car prices to be with us for some time. In fact, the organization’s chief data and information officer Richard Walker has said there will be a “sustained period” of high demand.
“The demand for used cars is fueled by many factors, including consumer confidence, low unemployment, concerns about public transport safety, but also the supply constraints that we see in the market. new cars, ”he said. “We estimate that there are up to 600,000 new car transactions that will not take place this year due to these constraints, with many consumers looking for alternatives to used cars. This suggests that we can expect an extended period of positive used car demand.
“Based on the incredibly strong metrics we’re seeing in the market, we’re forecasting at least 8 million used car deals this year. However, that’s not even starting to recoup the sales we saw lost in 2020 due to lockdowns; While the supply of used cars remains strong, we are confident that there is sufficient demand for used cars in the market to exceed our forecasts. While our forecast contrasts with the relatively conservative forecasts of other commentators, we have been – and will continue to be – guided by data rather than opinion. “