It is a very good idea to keep an eye on used car prices if you have any involvement in car broking. A change in values could mean many things, including a change in supply or the level of demand. These changes could affect your business, so you need to monitor them.
The latest details from Auto Trader will be good news for brokers in the UK though. The used car market is still very robust. In February there was another 0.7% rise in prices. That is a positive increase, pushing the average price to £17,880.
Huge growth
What makes the latest rise in prices so impressive is it is on top of previous record rises. In February 2022 values were up 32% over the same month in 2021. While 0.7% is tiny in comparison, it shows there hasn’t been a big cooling off. People still want to buy good quality second hand cars in the UK.
Impressively, the values of both petrol and diesel cars were up in February. The increases were 3.3% and 1.4% respectively. However, EV prices fell by -9.1%, bringing the market down.
Two different supply issues
The situation is an interesting example of how a lack of supply and too much can cause opposite issues. Petrol and diesel vehicles have risen in value because there aren’t enough available. The shortage is particularly tough in the £3,000 to £10,000 price bracket.
The issue with EVs is so many second hand models have become available recently. For example, the number of Mercedes EQA on the market was up 823% year on year in February. As a result there is saturation and people who want to buy can snap them up for much cheaper.
Quick turnaround
Another interesting piece of info from Auto Trader is the time vehicles remain on dealer’s forecourts fell in February. It was down to an average of just 25 days. That is a really fast turnaround, showing there is a huge amount of demand.
The current situation will give everyone confidence about the used car market in the UK. It is still strong and there is plenty of activity.
Want to try car broking?
It is quite a good time to look at becoming a car broker in the UK. Dealers need plenty of help to get quality second hand vehicles they can move quickly for a good profit. If you have the skills to help find cars and arrange deals, you could be very successful.
Auto Car Brokers can help you start a business here. Our package of materials has almost everything you could need. It complies our years of experience into a cohesive business in a box that you just need to unpack. There is only a single fee, with no franchise fees. Most importantly, there are no restrictions.
So, if you want to try car broking, why not have a read of our website or contact us? We would love to help you get a piece of the massive second hand car market.
