Hofmann Megaplan Blog
UK Used Car Prices Still On The Up, Highest In Europe
As 2021 drew to a close, used car prices in Britain were showing no signs of levelling out. According to the latest figures from Motors.co.uk, average prices for the 50 most popular models rose another 4.7% in November - that’s £729 on average.
Independent car dealerships put their prices up most according to the data (9.2%), while car supermarkets and franchised dealers increased average prices by 2.7% and 2.3% respectively.Motors.co.uk reported that the top seller was Vauxhall’s Corsa, perhaps no surprise as it’s consistently one of the best-selling new cars too. On average, Corsa’s spent just over 11 days on dealership forecourts before they were snapped up.
The pandemic sparked the price rises, which began midway through 2020. A worldwide semiconductor shortage affected new car availability and forced many to shop for a used car, leading to unprecedented demand. Used vehicle prices are high across Europe, but figures from Indicata suggest that here in Britain they’re the highest of all. According to its research, used car values here rose a further 28% in 2021, on top of the rises already seen in 2020.
“This current market trend of demand exceeding supply looks set to continue into the back end of 2022,” said Indicata Group Sales Director, Jon Mitchell. “Both the wholesale and retail markets have got to get used to prices at this level being the new normal.
“Stock levels show no sign of improving which guarantees prices will remain strong. There are restricted numbers of part exchanges coming into the market and a vast number of leasing contracts continue to be extended until such time as new car supplies improve.”