Used car prices drop slightly for the 1st time in 41 months, but it's not all doom and gloom!

Last month saw a noteworthy change in the motor trade scene. For the first time in a staggering 41 months, used car prices experienced a slight dip. As per the latest Retail Price Index presented by Auto Trader, the average cost of a used car stood at £17,736, a minor 0.4 per cent decrease compared to the previous year.

This downturn, the first since March 2020, wraps up an exceptional era for the motor trade. However, not all segments of the market witnessed this contraction. Cars in the age bracket of ten to 15 years saw a remarkable growth of 9.8 per cent year-on-year, while the 15+ market enjoyed a 6.1 per cent hike. Conversely, newer cars, particularly those under a year old, suffered a 2.5 per cent decrease in their values.

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The reason behind these dynamics? Auto Trader's experts believe the trend can be attributed to the gradual easing of supply constraints, leading to an increased number of second-hand cars joining the market. Richard Walker, Auto Trader’s director of data and insight, emphasised that while there might be a softening in overall figures in the upcoming months, the combination of persistent demand and limited supply ensures the market remains profitable.

ev

In other motor trade news, used electric vehicles (EVs) have grabbed attention with fluctuating prices. After a continuous 13-month decline, prices finally plateaued at £32,142 last September. Even though this still marks a year-on-year drop of 22.1 per cent, it's a positive sign compared to August's 22.6 per cent decrease. Addressing recent hurdles and governmental decisions concerning EVs, Walker is confident in the sustained role of EVs. He highlighted the increasing volume of used EVs in the market, driven by the ongoing de-fleeting of numerous EVs sold in recent years and the ZEV mandate.

sell more cars


Given this comprehensive insight, those aiming to sell more cars should keenly observe these market dynamics. It's not just about the broader picture but understanding the intricate segments of the market that could prove most lucrative. With a shifting landscape and EVs positioned as the future, staying informed and adaptable is the mantra for success.

You can view the original article at cardealermagazine.co.uk.



source http://autoengage.co.uk/home-page-6165/b/used-car-prices-drop-slightly-for-the-1st-time-in-41-months

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