Used car prices continue to soar despite sky high inflation rates
Sky high inflation rates have yet to hinder the exponential growth of the used car market, as prices continue to grow for the 93rd consecutive week.
According to Auto Trader figures, prices have registered a 29 per cent like-for-like increase on the same period last year, going up to an all time high of £20,340.
In the last six months, second hand cars have soared around £4,200, going up from £16,096 registered in mid-August.
Despite current inflation rates, consumer’s buying intentions has registered a minimal impact, as out of 4,100 buyers 26 per cent intend to buy within three months while 37 per cent want to do it in the next couple of weeks.
“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,” Auto Trader’s data and insights director Richard Walker said.
Instead of being impacted, second-hand cars are partially to blame for the increase in inflation prices witnessed in the last few weeks, City PM reported.
January data from the Office for National Statistics reported that between April and December 2021, the contribution of second-hand vehicles to inflation rose to 0.34 percentage points – the highest ever recorded since 2006.