The latest Retail Price Index from Auto Trader is fantastic reading for anyone who deals with second hand cars in the UK. Whether you are a dealer, a car broker, or are looking to sell your own vehicle, the news is great.
According to the data, June was the fastest month for price acceleration in the last eight months. It rose by an impressive 3.2%. That took the average used car value to £17,756. It caps off a great period for prices. They have risen for 39 months, adding an average of £3,900 to vehicles.
Solid start to the year
The price rise in June meant it was a very healthy first half of 2023 for second hand cars. Prices are heading up, adding profits for dealers, brokers, and sellers. At the same time, demand remains high. According to the data it was up 2.3% in June. However, supply was down 4.1%, showing people are still buying.
It is interesting that the second hand market is doing so well at the moment because retail is a different story. Prices here were actually a little softer in June, losing 0.3% month on month from May. There is an annual trend for this, so it is not all doom and gloom. However, it does still highlight that more people are choosing used vehicles.
Top models for price increases
Looking back at figures from June 2022 and comparing to last month, we can see which models have had the best price growth in the year. This is interesting reading, especially if you are a car broker. It could show the models you need to be looking at for maximum profit.
The top model is the Fiat Panda. The small hatchback has a great reputation because they are affordable, cheap to run, practical, and surprisingly good for driving. In June 2023 the average asking price was £6,609. This is 17% higher than the previous year.
Next on the list is the Peugeot Partner Tepee. The compact people career might divide opinion when it comes to looks, but the practicality and low running costs are winners for many buyers. The average asking price here was £10,081, up 15.9% on 2022.
Rounding out the top three is the Volvo XC70. The estate car is a popular model because of its reliability, huge amount of space, and safety pedigree. The average asking price was £11,372, gaining 15.8% in the year so only just missing the second spot.
Other models in the top ten include: two from Renault (Twingo up 14.7% and Scenic 12.4%), two from Hyundai (i10 13.6% and i30 12.2%), Volkswagen up! 13.8%, Suzuki Jimny 14.6%, and the Citroen Berlingo 11.8%.
As you can see, there is a very diverse range of models here. That shows there is demand for everything from city run-arounds to larger family cars.
Do you want to be a car broker?
High and rising second hand prices are wonderful for brokers. It can increase the commission you can make on each deal. It also helps that demand is high, meaning there is likely a lot of work to go around.
If you want to have a look at how to become a car broker, what it involves, and how it could reward you, we can help. You can learn more on our website or contact us. Then, if you need resources to help you set up your new business, we have them for you.
