Used car price growth hit an all-time high last month, with prices rising 17.2% year-on-year.
This is a record month-over-month increase – with prices rising 14.1% in July – which is also more than double the growth rate recorded in May, which was up 8.1%.
Over the past few months, these price increases have grown steadily and are driven by the huge demand for used cars.
This is due to supply issues in the new car market, as manufacturers have encountered problems building cars due to a shortage of semiconductor chips, as well as delayed demand due to periods of pandemic lockdown.
Data from the online automotive marketplace Auto Trader, which analyzes approximately 900,000 ads on its site for trends.
On its platforms in August, it recorded 70.2 million visits, a sharp increase of 36.4% compared to the figures before the pandemic.
A pleasant level of growth
Richard Walker, Auto Trader’s director of data and insight, spoke to the PA news agency about the results.
He said: “To put the price movement in context, in August 2020, average prices were increasing at a rate of 6% year-on-year, which at the time marked a new record.
“While few could have imagined a year later, growth would accelerate to nearly three times that rate, we have said throughout the pandemic that we anticipate sustained levels of growth fueled by strong consumer demand on the market, even when other commentators predicted a collapse in prices.
In its latest consumer sentiment survey of 2,200 car buyers, it found that 26% believe car ownership is more important than before Covid, while half said they feel more confident that they can afford their next car than a year ago.
The Jaguar XK saw the strongest price growth in August, rising 48.3% to an average of £ 26,447. Next come the Jeep Grand Cherokee, up 34.2% to £ 20,704 and the Mazda MX-5, up 33.9% to £ 13,091.