Figures from Auto Trader for July 2023 show it was an impressive 40th month of growth in a row for used car prices. This has been an astonishing period for second hand cars in the UK. It has been a great time for anyone that offers a car broker service in particular. Dealers will have been on the look-out for vehicles that can help them make the biggest profits.
A look at the data
The figures show that used car values were 0.3% up in July. While that is only a minor increase over June’s prices, it shows everything is moving in a positive direction.
If you look at values year on year rather than month on month, the news is also positive. July 2023 prices were 2.8% above values from last year. While that is lower than the 3.3% YoY for June, it is still good news.
In terms of average price, in July 2023 it was £17,975. The 0.3% growth added over £400 to values in just a month. YoY it is up from £17,175. That is fantastic for brokers, meaning potentially higher commissions for offering a car broker service.
Vehicle ages
The values of older models had the most significant growth in values. According to the figures, the MoM growth was 2.6% up in July. If you look at, YoY was even better with an increase of 8.7%.
Cars between 10 and 15 years old faired slightly worse, with 1.4% growth over June’s prices. However, the values for July 2023 were a massive 11.1% up on the same month in 2022.
Vehicles that are just 1-3 years old had the toughest time. Their values actually declined -2.0% on July 2022’s values. However, this contraction is largely because of a massive drop in the price of hybrid and electric cars. Their YoY values were down by -15% and -24%. Petrol and diesel on the other hand saw 3% growth.
Will values fall any time soon?
Many experts are predicting that even if the market cools, there won’t be a big dip in the price of second hand cars. This is because demand still remains high and other market constraints such as a lack of supply will persist.
The situation may seem a little daunting to anyone considering buying a second hand car at the moment. Many people will be facing the prospect of having a harder search for a vehicle and then higher prices. However, if you also have a used car to sell, you have some insulation. In fact, you could find that your current vehicle is worth far more than you first expected. This is especially likely if you hit the sweet spot with the age, condition, mileage, and fuel type.
Is offering a car broker service right for you?
At Auto Car Brokers we have a deep understanding of how the second hand car market works. A lot of people don’t really know the role that a car broker plays. However, the vehicle you end up buying may have been sourced by one. It is an important job, and one that can be massively rewarding for brokers.
If you want to learn more about broking, you can browse our website. It will give you info and show why it is a great opportunity to start your own business. Then, if you decide you do want to set up a car broker service, we have products to help you. There is a full suite of materials or you can buy individual resources that you need. You can also contact us for more details.
