Plan B “little impact” on used car price growth, data reveals
The UK Government’s plan B has had little impact on either consumer demand and user car price growth.
According to data from Auto Trader, between 6 and 12 December prices for used cars went up 28 per cent on a year-on-year and like for like basis – a 26.9 per cent increase compared with the same time last month.
Fuelled by an imbalance between supply and demand, price growth was not touched by the new restrictions, as people made 11.6 million visits to Auto Trader’s market place, increasing by 13 per cent the time they spend researching their next car. Volume of enquiries also grew by 46 per cent compared with 2019 levels.
“At this time of year, as we fast approach Christmas, it’s quite normal to see price growth slow on a week-on-week or even a month-on-month basis,” Auto Trader’s data and insights director Richard Walker said.
“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.”
A drop in supply levels caused by shortages of micro chips and raw materials is also behind the used cars’ growth, Auto Trader added.
“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,” Walker added. “Any suggestion, therefore, that any recent easing is anything beyond a normal seasonal trend is simply not correct.”