Whilst recent industry figures show used car sales fell in the third quarter in the UK, due in large part to the ongoing dearth of available stock, the latest data from Auto Trader’s Retail Price Index reveals used car prices remain stable. The average price of a used car increased to £17,863 this month, marking an increase of circa £300 on October’s average prices and around £500 in September.
Auto Trader also found electric vehicle (EV) prices have softened as electric supply strengthens. Looking at the data at a more granular level, internal combustion engine (ICE) vehicles are recording a trend similar to the wider market, with the average price of a used petrol and diesel increasing by £237 and £84 respectively between October and November (month-to-date).
The average price of a used electric vehicle, however, has dropped from £39,166 in October to £38,021 in November month-to-date. This is a fall of £1,145. This is a result of several factors, not least the significant increase in the levels of supply in the market. This is good news for those looking for a used electric car.
The volume of electric vehicle adverts on Auto Trader is up over 200 per cent so far this year. This shows that the transition to electric cars is growing and looks set to continue as motorists make the move towards zero emissions driving.
Richard Walker, Auto Trader’s Data and Insights Director, said: “The exceptional market dynamics we’ve seen over the course of the pandemic has shifted average prices up dramatically – around 47 per cent on 2019 levels. Whilst we continue to hear reference to a figurative cliff edge, or prices set to collapse, we still see no evidence of it.
“Based on what we’re tracking across the whole retail market, as well as forward views of supply chains, there’s nothing to suggest anything other than a return to relative normality now that those dynamics have been absorbed and new equilibrium seems to be stabilising.”