Used car price growth stabilizes as demand continues to rise
Used car price growth remains robust as last week (8e – 14e March), the average used car price rose 5.8% year-on-year (year-on-year) on a like-for-like basis, marking 44 straight weeks of price growth.
According to Auto Trader, as the growth rate has continued to slow from peaking 8.5% in mid-December, data shows it is leveling off, equaling the 5.8% year-on-year recorded the previous week. .
The data complements the positive performance in the Auto Trader market. At a time when the industry as a whole is trading at over 90% of typical trading volumes, there were 15.8 million cross-platform visits to Auto Trader last week, which is a 26% increase from compared to the same period in 2019.
Ad views also increased by 26%, while average time spent on the site increased by 22%.
Auto Trader Data and Knowledge Director Richard Walker said: âSince mid-January, we’ve seen consumer demand pick up, and just weeks away from the full reopening of foreclosures, the levels far exceeded our expectations. Along with the strong business performance already recorded by most retailers, this gives us real confidence in a quick recovery from the lockdown.
âStrong price growth has helped support strong profit margins for retailers and it is reassuring to see that the easing growth rates that we have been tracking since December have started to stabilize. With increasing levels of demand in the market, we see no reason to correct or adjust prices in the coming weeks. “
Looking at the pricing behavior of retailers last week, the number of price changes and the value of their adjustments are consistent with what would be expected in a typical March.
Last week, an average of 2,580 retailers made daily price adjustments, 45 more than the same period in 2019.
A total of 17,475 vehicles were reviewed during the week. Although this is about 3,000 more than two years ago, but it is consistent with the significantly higher inventory volumes currently on Auto Trader. And in terms of adjustments made, the average reduction was Â£ 247; Â£ 61 less than the 2019 average.