Used car price hikes show no signs of slowing until August
The average price of a used car rose 6.2 percent last week compared to the same period last year as strong growth in used cars continues.
Data for the week starting August 10 shows the market is in its 15th week of growth, which is driven by demand for gasoline and diesel vehicles. Last week gasoline rose nearly seven percent while diesel rose more than six percent.
However, alternative fuel vehicles, such as hybrid and electric vehicles, are seeing supply exceed demand and, as such, have experienced a price contraction of around 1%, marking the 13th consecutive week of price declines. .
The price increases are largely driven by huge demand. Auto Trader, which released data based on its site’s roughly 12,500 retailers, said it was seeing record traffic. During the week of August 10-16, traffic increased 26% year-over-year.
Commenting on the results, Auto Trader’s Director of Data and Knowledge, Richard Walker, said: Go up.
âThis is the result of the strong increase in consumer demand which shows no signs of slowing down in August. While the majority of auction houses have yet to open their auction rooms, online channels are near pre-Covid-19 capacity levels, which has seen supply issues encountered. by many retailers after the lockdown eased in recent weeks.
âWe are hearing concerns about the impact that economic uncertainty and the end of the government leave plan could have on the market. However, based on the exceptionally strong consumption indicators that we are seeing in our market, we are confident that used car sales and prices will remain dynamic in the weeks to come.