29% used car price hike

Record UK inflation was accompanied by a further 29% year-on-year rise in used car values during January, according to data published by Auto Trader.

The online automotive marketplace’s Retail Price Index report said that the average price of a car advertised on its portal reached £20,340 last week – marking a £4,200 rise in just six months.

Ongoing vehicle supply shortages and strong customer demand was once again credited for what was a 93rd consecutive week of price growth on Auto Trader.

Last month’s price hikes also came as UK inflation increased to the highest rate for three decades, the rate hitting 5.5% last month.

Auto Trader data and insights director, Richard Walker, said: “Although inflation will always pose a potential headwind for demand, based on the positive consumer metrics we’re tracking across the retail market, as well as broader economic factors such as the falling unemployment rate and record number of job vacancies, we don’t anticipate any significant easing any time soon.

“Accordingly, with such strong levels of demand, and no end in sight for the current supply challenges, we can expect the strong year-on-year price growth to continue well into the middle of the year.”

Read the full article here Record UK inflation accompanied by 29% used car price hike | Used Cars (am-online.com)