Prices decline after 41 consecutive months

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【Summary】Used car prices fell in September for the first time in 41 months, with an average price of £17,736, down 0.4% year-on-year. Second-hand electric car prices also stabilized after 13 months of contraction. Consumer demand for used electric vehicles increased significantly, surpassing supply growth. The director of Auto Trader emphasized the potential for profit in the used electric car market, despite recent government policy changes.

FutureCar Staff Oct 05, 2023 4:19 PM PT

Prices decline after 41 consecutive months

According to the Auto Trader Retail Price Index, used car prices experienced a decline in September, marking the first decrease since March 2020. The average price of a used car last month was £17,736, down 0.4% compared to the previous year. This decline also signifies the end of an impressive 41 months of consecutive growth.

On the other hand, prices for second-hand electric cars are showing signs of stabilization. After 13 months of continuous contraction, prices remained flat in September at £32,142. This stability can be attributed to the surging consumer demand, which increased by 86.7% last month. Interestingly, this is the first time since July 2022 that demand has outpaced supply growth, which was up by 56.8%.

Richard Walker, the director of data and insight at Auto Trader, emphasized the bright prospects of used electric vehicles amidst the stabilizing prices and growing demand. He urged retailers not to be distracted by political developments and highlighted the ongoing increase in the number of used electric cars available in the market. Walker stated that EVs are here to stay and present profitable opportunities for retailers who follow the data.

Furthermore, Walker highlighted the impact of the recovery in new car sales on the used car market. The increased supply of new cars has triggered the first overall price contraction in the second-hand market in over three years. However, he emphasized the importance of considering the context and not being misled by headlines. Despite the overall softening of figures in the coming months, the market remains profitable due to strong demand and limited supply.