Used cars are continuing to see record price hikes despite the introduction of tighter rules to combat covid.
Car dealers have said the government’s stricter measures on the whole didn’t affect their businesses too much, however, there was concern that the new regulations would keep customers away from the forecourt.
Used car prices are up 28 per cent this December compared to last year, and the 84th consecutive week of price growth.
This has meant the average price of a used car has grown more than £5,000 to about £20,000.
The acceleration in price is believed to be coming from an imbalance in the supply and demand of used cars, with increased demand largely stemming from the low supply of new cars caused by the semiconductor chip shortage.
On top of this, the supply of used cars was down 11 per cent compared with 2019. It is believed this is also down to the new car supply issue as people are holding onto their vehicles longer, report Hull Live.
Richard Walker, Auto Trader’s data and insights director, said there had not been any price increase compared with the previous week, but explained that this was common for this time of year.
He added: “What is far less typical, however, is the very strong levels of consumer demand that we’re continuing to track in the market, which even with the introduction of the Government’s Plan B measures, shows no sign of weakening.
“In fact, fuelled by the recovering economy and a resilient labour market, we can expect very strong demand to continue for some time to come.
"Coupled with the ongoing new and used car supply constraints, these market dynamics will keep used car price growth on its current trajectory well into 2022.
"Any suggestion, therefore, that any recent easing is anything beyond a normal seasonal trend is simply not correct.”
Last week, the Seat Alhambra saw its price increase 48.7 per cent, more than any other car, to £19,159. It was followed by the Renault Grand Scenic (47 per cent/£9,848) and the Ford S-Max (45.5 per cent/£14,833).
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