Retail price index | October 2021

Press release

Retail price index | October 2021

November 5, 2021

Second-hand prices no sign of significant slowing as strong demand fuels 19th consecutive month of growth

According to the latest results of the Auto Dealer Retail Price Index, which is based on a daily price analysis of around 900,000 vehicles, the huge growth in average used car prices shows no sign of significant easing. In fact, October was the 19the consecutive month of growth, with prices up a record 25.6% year-on-year and like-for-like. Not only is this the biggest monthly jump in growth recorded, up from 21.4% in September, but such is the recent acceleration in prices, the average price of a used car has risen by almost £ 3,000 in just five months, from £ 13,973 in May to £ 16,878 in October.

Highlighting how strong the used car market is currently, nearly one in four (22.2%) of nearly new cars available on the market (those less than 12 months old) are currently more expensive than their new equivalents. This is a significant jump from the previous record of 17% recorded in September, and nearly six times more than in January (4%).

This growth continues to be driven by single market dynamics, in particular the exceptionally high levels of consumer demand in the market. This is reflected in the huge volumes of traffic to Auto Trader in recent months, which increased by 30% last month (64.6 million cross-platform visits) compared to October 2019. The time consumers spent on Searching for their next car on the market also increased, up 18.8% (total 9.9 million hours).

Another indicator of the huge demand in the market is the average number of views a car advertised on Auto Trader receives. This average was up 35% last month from October 2019. As a result, the average number of inquiries sent to retailers also increased significantly, up 40%. Moreover, based on the average number of days on sale, cars were selling 11% faster last month than two years ago (24 days versus 27).

In addition to massive demand in the market, price growth has also been affected by persistent problems with the supply of new and used cars: according to the Auto Trader Market Insight tool, which is available to all retailers, supply was down -12.2% last month when compared to October 2019.

While there may be a slight slowdown, it is the likely continuation of this dynamic – high demand and constraint – that will keep used car prices on a similar path next year. Richard Walker, Director of Data and Information at Auto Trader, has explained :

What we are currently seeing in the market is the result of basic economics – exceptionally strong consumer demand and a limited supply chain that simply cannot catch up. Going forward, demand will continue to be fueled by healthy levels of consumer confidence, a positive shift towards car ownership and the 1.5 million “lost” car sales in 2020. Add to the fact that we are unlikely to see a strong return on the offer. Due to falling new car sales volumes in recent years and lower levels of pre-registration, we can expect the strong year-over-year price growth to continue. next year.

“Although we may see a slight slowdown from week to week due to typical seasonal patterns, for year-over-year growth to slow to single-digit levels we saw before the pandemic , the levels of supply and demand will even have to.From what we see in the market, the economy at large and the hundreds of thousands of daily price observations that we are able to track on the live retail market, there is simply no evidence to suggest that it will be anytime soon

Electricity demand increases before ICE

Internal combustion engine vehicles saw supply levels drop further last month as global chip shortages in the new car market continued to restrict the availability of used cars, the number of gasoline and diesel cars. used in the market dropping -5.0% and -12.8% per year. over one year respectively.

However, consumer demand remained positive for both types of fuel, increasing by 7.2% and 1.7% respectively. As a result, comparable prices for used petrol and diesel cars recorded a positive performance in October, with the average price of a petrol car (£ 15,620) increasing 26.2% year-on-year (from 21.7%). % in September). -21) and the price of a diesel car (£ 16,880) increasing by 26.7% (up from 22.7% in September 21).

The growing popularity of electric vehicles continued in October, with more and more people considering forgoing traditional types of fuel. Indeed, demand for volume[i]brand and premium[ii]branded electric vehicles was considerably higher than the market at large, with increasing interest of 130.0% and 99.4% respectively. With demand exceeding supply, for both volume branded and premium branded electric vehicles, prices in October were up 20.7% (£ 25,271) and 3.8% (£ 47,001). ) respectively.

Top 10 price growth (all types of fuels) | October 2021

Rank

Make

Model

Average asking price

Price change

1

Land Rover

Defender 90

£ 77,577

68.8%

2

Jaguar

XK

£ 28,715

45.2%

3

SEAT

Alhambra

£ 18,353

41.9%

4

Hyundai

i30

£ 12,747

40.8%

5

Ford

To concentrate

£ 14,237

39.6%

6

Land Rover

Defender 110

£ 79,081

39.3%

7

SKODA

Yeti

£ 11,642

38.5%

8

Opel

Cascade

£ 10,720

37.3%

9

SKODA

Octavia

£ 15,809

37.0%

ten

Toyota

Yaris

£ 12,228

36.7%

Top 10 of the price contraction (all types of fuels) | October 2021

Rank

Make

Model

Average asking price

Price change

ten

Volkswagen

CC

£ 7,779

-2.3%

9

Decree

Punto Evo

£ 2,469

-3.4%

8

Mercedes-Benz

CLC class

£ 4,316

-3.6%

7

Porsche

Taycan

£ 121,341

-3.8%

6

Jaguar

Type X

£ 3,595

-3.8%

5

Volkswagen

Jetta

£ 5,095

-5.3%

4

Renault

Koleos

£ 20,828

-7.3%

3

MG

MG5

£ 24,497

-10.0%

2

Suzuki

Splash

£ 3,506

-15.4%

1

Suzuki

SX4

£ 3,863

-19.3%

[i] Electric vehicle brands by volume classified as follows: Ford, Volkswagen, Vauxhall, Peugeot, Nissan, Citroën, Kia, Hyundai, MG, Renault, SEAT, SKODA, Honda, Toyota, Fiat, Suzuki, Mazda, Mitsubishi, Smart, Dacia, Jeep, Subaru

[ii] Premium electric vehicle brands classified in the following categories: Audi, BMW, Mercedes-Benz, Land Rover, Jaguar, Tesla, Volvo, MINI, DS AUTOMOBILES, Lexus, Abarth, Alfa Romeo

Disclaimer

Auto Trader Group plc published this content on 05 November 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 05 November 2021 03:17:04 PM UTC.


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