LSE: 747.80 GBP -1.80 (-0.24%)
Menu
Close
10 November 22 Press releases

Used car transactions | Q3 2022

Used car market feels the full impact of stock shortage

Given the current economic backdrop one would be forgiven for equating the fall in used car sales to a similarly dramatic drop in demand from cash conscious car buyers. But whilst demand is easing on the inflated levels recorded last year, in reality, the market is simply feeling the brunt of the massive dearth in available stock, fuelled by the circa 2.5 million new cars ‘lost’ over the course of the pandemic.

“Crucially, our data shows that sales are healthy in age cohorts where the stock is available, with sales of five-year old cars up 18% on 2019, put simply; where there’s stock, there’s sales. And electric vehicles especially are flying off forecourts – there aren’t many around still, and demand for them is high so it’s encouraging to see their market share increase.

“The effects of the stock squeeze are reflected in our own pricing data, which shows used car prices up 8.1% year-on-year in October – the 31st month in a row of annual price growth. A used car changed hands for an average £17,587 last month, over £500 more than August.

“There’s no doubt that the cost-of-living crisis and rising interest rates are a potential headwind for the automotive market, and we do expect to see consumer demand ease, particularly during the traditionally quieter festive period. However, current engagement levels on our marketplace remain comfortably ahead of pre-pandemic levels.

“So, whilst the world around us is uncertain, the automotive market remains in a robust position to weather the potential turbulent months ahead.”

Share:
Up next
Auto Trader data to power Office for National Statistics' official measures of inflation
Read More
Retailers embracing digital are reporting more sales, more efficiency and more satisfied customers
Read More
Auto Trader is first FTSE 100 to achieve Gold Carbon Literacy status
Read More

Stay up to date

Follow us on our social channels to keep up with the latest news, insights and company developments.

 

If you would like to be added to our News & views mailing list, or have any media-related enquiries, please contact our press team:

Auto Trader UK

Auto Trader Insight

Auto Trader Life

Other Group sites

Looking to join the team?

Careers

Looking to buy or sell a vehicle?

Consumers

Keep in touch

Sign up to our email alerts service:

RNS alerts

Join our news & views mailing list
or submit media-related enquiries:

Contact our press team
  • @2024 Auto Trader Group plc. Registered in England with company number: 09439967.