CarFinance 247 reports 11 per cent increase in prices following used-car market boom
UK motor finance platform CarFinance 247 has registered an 11 per cent increase in the average price of vehicles sold going up from £9,364 in October 2020 to £10,434 a year later.
As a result of supply chain issues and strikingly high levels of demand, prices have gone up almost 30 per cent on 2019 levels, rising 32 per cent in London to £15,205.
“The UK’s used car market continues to boom,” CarFinance 247’s chief executive Reg Rix said. “The international supply of new cars continues to lag demand as consumers look to get back on the road.
“New car manufacturers can’t get the parts, and this is causing the squeeze in the used car market.”
The platform has also reported a surge in demand for its services, with applications for finance soaring to 95,000 per month, forcing the firm to hire 20 per cent additional staff.
“With prices on the rise, consumers are increasingly looking to CarFinance 247 to make finding and funding their ideal car a reality, whatever deposit they are working with,” Rix added.
The chief executive comments come on the same day the Society of Motor Manufacturers and Traders (SMMT) revealed that the used car market grew 11.5 per cent in 2021, as 777.997 more cars were sold, City PM reported.
“The demand for personal mobility has undoubtedly increased during the pandemic, so it’s vital we have healthy new car sales to drive fleet renewal and the used car market if we are to improve air quality and address climate change,” said SMMT’s chief executive Mike Hawes.
Despite supply chain issues, the industry has witnessed high levels of demand spill over in 2022.
CarFinance 247’s average prices went up to £10,991 while Auto Trader’s retail price index reported a 31 per cent year increase in January, the 22nd consecutive month of growth.