Second-hand car prices are rising yet again – despite speedier new car delivery times and Britons cutting back on expensive purchases during the cost-of-living squeeze.
The combination of high demand and low stock of used vehicles has seen the average price of a second-hand motor increase by 2.3 per cent compared to mid-March 2022, according to Auto Trader.
This is the first acceleration in year-on-year price growth in 10 months. It means the average price of a car advertised for sale on Britain’s largest used vehicle website is £17,720.
But while average vehicle prices across all fuel types are gathering pace once more, the value of second-hand electric vehicles (EVs) is declining.
‘Don’t expect to see used car prices falling anytime soon’: Experts are warning motorists that high demand and low stock is keeping second-hand vehicle values at record highs despite cost-of-living crisis
The average price of a second-hand car listed for sale on Auto Trader rose by 2.3% compared to mid-March 2022. It is the first acceleration in year-on-year prices since April 2022
To put the huge rise in used car prices into perspective, Auto Trader’s historical data shows that in March 2020 – the month Britain went into Covid lockdown – the average value of a second-hand motor on its website was £13,601.
It means the average price of a used vehicle has increased by 30 per cent, or £4,119, in three years.
This month has seen the growth in prices accelerate for the first time since April 2022, having gradually declined on a year-on-year basis for the last 10 months.
Auto Trader says the jump in March has been causes by ‘the imbalance of supply and demand in the market’.
It says the availability of used cars is down 12 per cent year-on-year, however demand – measured by page views on its website – is up 9 per cent on the same month in 2022.
Commenting on the data, Auto Trader’s director of data and Insights, Richard Walker, says the market has picked up since Christmas. He warned drivers not to expect to see record-high used car prices go into reverse anytime soon.
‘As soon as we came out of the quiet festive period, we saw signs of a used car market in very robust health,’ Walker said.
‘The acceleration in the rate of price growth after 10 months of softening could not be a clearer barometer of the current market, which despite the wider economic and political backdrop, is going from strength to strength this year.
‘Although growth rates may begin to soften again, with no immediate change expected in the current supply and demand dynamics, anyone predicting a fall in used car prices anytime soon will be disappointed.’
Top 10 used cars with the biggest price increases
1. Hyundai i10
Up 16% to £8,410
The tiny Hyundai i10 has recorded the most sizable percentage increase, with values up to 16% to £8,410
In terms of the biggest percentage risers, the Hyundai i10 city car has recorded the most sizable increase, with values up 16 per cent to £8,410 this month.
This means if you bought one of these little Korean runarounds in 2022 you would have paid an average price of £7,250. A like-for-like model today is worth £1,160 more.
2. Mercedes-Benz S-Class
Up 14.6% to £36,149
The luxurious Mercedes-Benz S-Class is now sold used for an average price of £36,149 – that’s 14.6% higher than a year ago
The luxurious Mercedes-Benz S-Class is next on the list. The flagship limo from the German brand has seen a year-on-year price increase of 14.6 per cent.
The average S-Class now costs £36,149 an increase of £4,606 compared to March 2022 (£31,543).
3. Fiat Panda
Up 14.1% to £6,033
The Fiat Panda is another notable riser up 14.1% to £6,033. That’s despite its poor crash test rating
Proving just how popular small – and cheap – cars are on the used market today, the Fiat Panda is the third largest percentage riser in the last 12 months.
Despite having a poor Euro NCAP crash test record, the average advertised price is up 14.1 per cent to £6,033 from its average price of £5,287 in March 2022. That’s an increase of £746.
4. Renault Twingo
Up 13.4% to £5,012
The average price of a Renault Twingo has increased by £582 in a year. That’s a jump of 13.4%
Renault’s Twingo city car might not have the appeal of rivals like the VW Up!, but advertised prices for this rear-engine, rear-wheel-drive runaround have jumped considerably in the last 12 months.
The average for sale price of a Renault Twingo on Auto Trader is up by 13.4 per cent year-on-year to an average of £5,012, rising from £4,420 (an increase of £582).
5. Peugeot Partner Tepee
Up 13.3% to £10,095
The average Peugeot Partner Tepee is now being listed for £10,095, which is 13.3% higher than advertised in March 2022
The Peugeot Partner Tepee has rocketed up 13.3 per cent in value to give it a new average advertised price of £10,095.
That is £434 higher than what this compact MPV was being listed for a year ago, when the average was just £9,664. Mobility-compliant cars like this – which can be converted to carry a wheelchair – are hugely popular on the used market.
=6. Kia Picanto
Up 12.9% to £9,291
The Kia Picanto, the sister car to the Hyundai i10, has seen its average price increase by 12.9% – or £1,061 in monetary terms
The Kia Picanto is the sister car to the Hyundai i10 that tops the rankings of the biggest used car price risers year-on-year. The Kia option has jumped up 12.9 per cent to a new average price of £9,291.
Like-for-like Picantos offered this time last year were listed for an average of £8,230, meaning a 12-month increase of £1,061.
=6. Renault Scenic
Up 12.9% to £5,657
The Renault Scenic has seen its average price increase by 12.9%. Compact yet versatile family cars appear to be in big demand
The Renault Scenic is another versatile compact MPV – a breed of car that is becoming more uncommon by the year as SUVs continue to dominate the market. Auto Trader says the average advertised price has increased by 12.9 per cent in a year, up to £5,657.
This means people who bought it last year for £5,010 may have seen a tidy £647 profit in just 12 months.
8. Smart fortwo
Up 12.8% to £7,367
While small in dimension the Smart fortwo is seeing a very big rise in average used prices. These diminutive city cars are up 12.8% in a year, says Auto Trader
The Smart fortwo is easily the smallest car in this list. The ultra-compact city car is sold today only with an electric powertrain, but petrol versions are still shooting up in value as more people hunt for affordable city runarounds.
Advertised prices have risen 12.8 per cent to £7,367 in March 2023 – an £867 year-on-year increase from £6,770.
9. Volkswagen CC
Up 12.4% to £8,975
The value of used Volkswagen CCs has increased by 12.4% to £8,975 in a year. That’s impressive for a car that’s been out of production since 2016
Volkswagen’s CC – the replacement for the Passat CC saloon – has been out of production for almost seven years, but there’s been a resurgence in demand for these styling family motors.
Auto Trader says prices for CC has increased by 12.4 per cent to £8,975 – a rise from £7,985 in March 2022, which is up £990.
10. Citroen Berlingo
Up 12.3% to £12,881
The Citroen Berlingo is another compact MPV proving to be in huge demand on the used market. Average used advertised prices are 12.3% higher – or up £1,411 in monetary terms
The Citroen Berlingo Multispace is the sister machine to the Peugeot Partner Tepee. Like its French sibling, it is popular due to the shortage of small-size MPV that offer lots of space and motability options.
Average advertised used prices have increased by £1,411 in a year to £12,881. That’s up 12.3 per cent on March 2022, when these cars were listed for an average of £11,470.
Auto Trader says there’s a ‘huge overbalance of supply’ of used electric cars entering the market, which is why advertised prices for popular models are coming down
Used electric car prices are falling
While the average price of a used car listed on Auto Trader is accelerating again, values of EVs are on the decline.
The company says that ‘average used car retail price growth is being held back by the ongoing contraction in used EV values,’ which in March have dropped 13 per cent year-on-year to £33,060.
The 10 used cars that have fallen in price most year-on-year
Used Jaguar I-Pace prices are down almost a quarter on this time last year
1. Jaguar I-Pace: down 24.3% (£41,710)
2. Tesla Model X: down 21.9% (£56,074)
3. Tesla Model 3: down 21.3% (£34,307)
4. VW ID.3: down 19.3% (£29,943)
5. Audi e-tron: down 8.2% (£46,569)
6. Tesla Model S: down 16.6% (£38,839)
7. Hyundai ix35: down 11.9% (£7,243)
8. Kia Optima: down 11.6% (£12,560)
9. BMW 8 Series: down 11.0% (£49,121)
10. Renault Zoe: down 10.4% (£17,407)
Source: Auto Trader
In contrast, the average price of a used petrol (£16,102) and diesel (£16,236) car is up 4.3 per cent and 2.4 per cent respectively.
It says this is due to a ‘huge overbalance of supply’.
Auto Trader’s mid-month report said: ‘The current supply of both used petrol and diesel cars is down circa 20 per cent year-on-year, but the rate of stock growth of used EVs has rocketed, with supply up a massive 261 per cent year-on-year.’
Since August, the Nissan Leaf has seen stock levels increase a massive 313 per cent, while supply of the Renault Zoe was up 235 per cent, and the Tesla Model 3 up 148 per cent.
Jaguar’s I-Pace was the biggest price faller of all cars, with advertised prices for the premium EV down 24.3 per cent year-on-year.
The Tesla Model X (down 21.9 per cent), Model 3 (down 21.3 per cent) and Model S (down 16.6 per cent) also posted big price declines.
In fact, of the 10 biggest price fallers, seven were EVs (also including the VW ID.3, Audi e-tron and Renault Zoe).
‘This dramatic uptick is resulting in a significant softening in values – since September, one year old Model 3 prices have fallen around £8,000 and show no sign of slowing,’ the report said.
Availability of second-hand EVs is growing more than five times faster than demand, with interest in battery cars up 47 per cent on the same period last year.
Richard Walker added: ‘Despite some of the recent reports, it’s clear that consumer demand for EVs remains very robust, so it’s important that we correct the myth that consumers don’t want them and that they don’t work.
‘Encouraging car buyers into used EVs through incentives, marketing and information to demystify them will be critical.’
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https://www.dailymail.co.uk/money/cars/article-11885611/Used-car-prices-rising-electric-vehicle-values-falling.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Used car prices are rising AGAIN – but electric vehicle values are falling