Used car prices rise again in October as buyers hunt for Fiestas
Used UK car prices climbed again in October on both a year-on-year and a month-on-month basis, the result of ongoing supply issues combined with healthy levels of consumer demand.
Auto Trader’s latest Retail Price Index data showed average used car prices increased 8.2%[1] year-on-year this month on a like for like basis – marking the 31st consecutive month of annual price growth and putting the average cost of a second-hand car at £17,575[2].
The figures show no indication of prices tumbling anytime soon, with average prices also increasing month-on-month, climbing £166 on September (£17,409), and £536 on August (£17,039).
Despite economic uncertainty, used prices have been buoyed by robust levels of consumer demand and post-COVID shortages which impacted production and the supply of second-hand vehicles. Used cars are taking just 26 days to sell – the fastest since October 2021 (24 days).
With news of Ford terminating the production of its iconic Fiesta after four decades, demand for the legendary hatchback has surged on the Auto Trader marketplace, with the volume of advert views increasing circa 9% on 26th October (the day the news broke) versus the prior week[3], and circa 11% on the prior month.
The average price of a used Ford Fiesta on Auto Trader is £10,473, which is up a whopping £3,110 on pre-pandemic levels[4]. Remarkably, such is the demand for the Fiesta, the average price of a ‘nearly new’ (less than 12 months old) model is £23,601, which is £405 more expensive than a brand-new equivalent (£23,196).
Erin Baker, editorial director, at Auto Trader, said: “Our data reveals there’s still no sign of used car prices tumbling anytime soon. Healthy levels of demand, combined with the ongoing squeeze in both new and used car supply, means we’re a long way off prices dropping to pre-pandemic levels.
“For the millions of car owners in the UK, this ongoing surge in values means the car sat on their driveway could be worth considerably more than they think, and in many cases, more than they originally paid for it. And with Ford ending production of its iconic hatchback, if you own the keys to a Fiesta, you can expect its value to only go in one direction.”
Top 10 price increases (all fuel types) | October (1st – 26th) 2022 vs October 2021 like-for-like
Top 10 price contraction (all fuel types) | October (1st – 26th) 2022 vs October 2021 like-for-like
[1] Based on 1st – 26th October 2022 vs 1st-26th October 2021
[2] As of 27th October 2022
[3] 19th October 2022
[4] Based on 1st – 26th October 2022 vs 1st-26th October 2019
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