Photo: Seller on Bring a Trailer
While almost everyone in the world is expecting used car prices to drop back to normal, reports show that they are still up high and that there is no going away from all of this. Even today, demand for used cars is at a level that is described as “healthy,” while the average price of a used car in August was 15 percent higher than in August 2021.
While all the statistics that we are referring to are based on the advertised price of used vehicles that are for sale, the market still shows that there is an increase in the average price.
The increase that we are referring to is both on a like-for-like basis for the month of August, but also year-on-year, while marking the 29th consecutive month of price growth for used cars.
The values that we mentioned above come from the Auto Trader Retail Price index, and they have been obtained from the daily pricing analysis of approximately 900,000 vehicles. The makers of the study claim that it is the largest sample size on the market, which brings the most accurate view.
The folks over at Auto Trader began tracking used car prices ever since 2011, and their figures show that last month's movements are consistent with typical seasonal patterns, which involve a small drop in August.
Despite this, prices did increase from July to August 2022, but only by 0.3 percent on average. The explanation for the seasonal drop is linked to the typical month that people usually take their summer vacation, when many prefer to spend money on having fun instead of buying used cars. Similar seasonal patterns can be observed during the winter holidays, as well as after New Year's Eve, or when Spring arrives.
When compared to pre-pandemic levels, consumer demand for used vehicles remains significantly above what was recorded in 2019, and so is the average used car price.
According to Auto Trader, the average price of a used car was 43 percent higher in August 2022 when compared to August 2019. The increase over 2020 was of 36 percent.
In the UK, there is an immense backlog of people who are waiting to take a driving test, which means that there will be approximately 500,000 potential vehicle customers in the market for a vehicle once they get to take and pass their test.
The desire to buy a car is greater than it was in pre-pandemic times, as most people no longer consider a car to be a discretionary luxury, but a fundamental need.
Back in February 2020, just 71 percent of car buyers said that a vehicle was a fundamental need, but the level is currently at 77 percent. Just for reference, the average price of a used car in the UK in August 2022, according to Auto Trader, was GBP 17,039 (ca. $19,694).
We will leave you to judge if that is a lot of money or something affordable – in the end, it is relative to what every person is willing to spend, and to every person's personal budget.
The increase that we are referring to is both on a like-for-like basis for the month of August, but also year-on-year, while marking the 29th consecutive month of price growth for used cars.
The values that we mentioned above come from the Auto Trader Retail Price index, and they have been obtained from the daily pricing analysis of approximately 900,000 vehicles. The makers of the study claim that it is the largest sample size on the market, which brings the most accurate view.
The folks over at Auto Trader began tracking used car prices ever since 2011, and their figures show that last month's movements are consistent with typical seasonal patterns, which involve a small drop in August.
Despite this, prices did increase from July to August 2022, but only by 0.3 percent on average. The explanation for the seasonal drop is linked to the typical month that people usually take their summer vacation, when many prefer to spend money on having fun instead of buying used cars. Similar seasonal patterns can be observed during the winter holidays, as well as after New Year's Eve, or when Spring arrives.
When compared to pre-pandemic levels, consumer demand for used vehicles remains significantly above what was recorded in 2019, and so is the average used car price.
According to Auto Trader, the average price of a used car was 43 percent higher in August 2022 when compared to August 2019. The increase over 2020 was of 36 percent.
In the UK, there is an immense backlog of people who are waiting to take a driving test, which means that there will be approximately 500,000 potential vehicle customers in the market for a vehicle once they get to take and pass their test.
The desire to buy a car is greater than it was in pre-pandemic times, as most people no longer consider a car to be a discretionary luxury, but a fundamental need.
Back in February 2020, just 71 percent of car buyers said that a vehicle was a fundamental need, but the level is currently at 77 percent. Just for reference, the average price of a used car in the UK in August 2022, according to Auto Trader, was GBP 17,039 (ca. $19,694).
We will leave you to judge if that is a lot of money or something affordable – in the end, it is relative to what every person is willing to spend, and to every person's personal budget.
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