Used car prices soar!

Second car values soar

Another result of the pandemic is that the cost of second-hand cars has surged with a record increase in June, for the 15th consecutive month. The average second-hand car is £14,276 according to Auto Trader Retail Price Index, up 11% year-on-year.

Whilst there have been supply constraints throughout the pandemic, there’s been record demand for second-hand cars, which is apparently the main driver behind the price increases. With people wanting to avoid public transport, instead opting for their own set of wheels, this has further boosted demand.

And you may think that this is just for petrol vehicles… well interestingly, you’d be wrong. Whilst sales of new diesel vehicles are flagging, demand for used diesels is going strong – in fact, these cars saw a 13% increase year-on-year.

So, if you’re looking to part with your car, there’s never been a better time to sell, particularly if you were looking to trade up, the gap between the value of your current vehicle and a newer car is likely to have reduced. That said, new car stock is still under pressure, so finding what you want may be the challenge here, as might be the waiting list.