The latest data from Auto Trader showcases the health of the used car market. It will be great news for every car broker in the UK as well as dealers and anyone looking to sell.
There are a couple of important figures to look at here. Firstly is the fact that the prices of second hand cars were up by 0.2% on December. It may only be a small rise, but it shows the market continues to be robust.
A better figure is that the prices are 2.7% higher than January 2022. What makes it so impressive is that the values at the start of last year were record highs following growth of 31.3%. It is therefore quite incredible that the figures for last month were even higher.
In monetary terms, the average price of a second hand car is now £18,119. That is a continued rise, building on the over £4,000 increase from the first half of 2022.
How quickly do cars sell?
Auto Trader also reported that used cars were selling relatively quickly. The average was just 40 days in January. That is a day slower than in the same month in 2022. However, it is surprising considering the cost of living crisis and other pressures. It shows that the market is definitely robust and there is still interest. That is excellent if you are a car broker.
A little more surprisingly is the age of vehicles that are selling fastest. Vehicles that are 10-15 years old tend to only be on the forecourt at dealerships for 35 days. It is a day longer (36) for cars that are 5-10 years old. Amazingly 1-3 year old vehicles took the longest, averaging at 47 days. This is likely due to more choice.
In addition, an Auto Trader survey said that an impressive 78% of 1,900 people were planning on buying a car in the next 6 months. So, the market is likely to remain robust.
Top ten models
While the average increase in prices was just 0.2%, Auto Trader said some models had a much stronger month. The Mercedes S Class saw values increase by an impressive 20.4%. It was the only model to break the 20% mark.
The rest of the top ten and their value increases is: Hyundai i10 (19.7%), Fiat Panda (18.7%), Fiat Tipo (18.6%), Kia ProCeed (18.4%), Toyota Avensis (17.9%), Renault Scenic (17.9%), Renault Grand Scenic (16.9%), Hyundai ix20 (16.8%), and the Citroen Berlingo (16.6%).
It is interesting how much diversity there is here. Some buyers are favouring small, efficient cheap to run cars like the Hyundai i10 and the Fiat Panda. Others are going larger with the Toyota Avensis and Renault Scenic. Then there are people still looking for luxury like the Mercedes S Class.
Talk to us if you want to be a car broker
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You can find out more about what we have to offer and what to expect as a car broker on our website. Plus, you can contact us if you have any queries.