Press release

Auto Trader Retail Price Index | May 2019

Retail prices remain buoyant in May

  • Seasonal downturn had less impact in 2019 compared with previous years
  • Used car market remains buoyant but rate of growth has slowed
  • Average price of EVs and AFVs nearly double that of ICE counterparts

Used car prices in the UK continue to grow despite Brexit and economic uncertainty, albeit the rate of growth has slowed to 0.8%, the slowest since December 2016. This continuing shift in price, which we’ve seen throughout 2019, means average sticker prices are £12,775.

The latest findings from the Auto Trader Retail Price Index show that diesel cars had the slowest growth rate in May at 0.4% and an average sticker price of £14,163. While petrol cars have seen price growth of 1%, with an average retail price of £11,174.

Meanwhile, alternative fuelled vehicles (AFVs) continue to outdo both powertrains at 4.8% growth and an average sticker price of £21,663 nearly double that of its internal combustion engine (ICE) counterparts. Specifically, electric vehicles (EVs) are the stand-out performer; price growth is still in double digits at 11.8%, and they continue to rise in average price, £23,771 - the highest on record.

Challenging the negative rhetoric

“There has been much rhetoric around the strength of the used car market in recent weeks, namely that prices have plummeted however, Auto Trader data tells a different story. Prices are still growing, it’s just that the rate of growth is slower than we’re accustomed to and that we’ve seen in recent months,” explains Karolina Edwards-Smajda, Auto Trader’s Director of Commercial Products.

Looking at circa three-year-old stock with around 60,000 miles on the clock, it’s clear the seasonal trend has an impact annually, driven by the March registration plate change. Month-on-month impact on price is down 3.56% which is less severe than we saw in 2018, 2017, 2012 and 2011.

Edwards-Smajda continues: “There is a clear trend every year following September and March plate change, resulting in an increase in three-year-old, 60k vehicles. The used car market has an influx of stock, often as a result of consumers trading in their car for a new one. Following the March plate change, the volume of three-year-old cars reaches its peak between March and June. This saturates the market and prices become more competitive – which is what we observed happening in May. This is part of the annual cycle, and it’s a trend we see every year.”

Searches for AFVs reaches all-time high

The number of people searching for AFVs has increased to an all-time high, with 8% of all fuel related searches on Auto Trader for the fuel type this month. Petrol has lost the share gained by AFVs, accounting for 51% of all fuel related searches. Searches for diesel remains flat at 41%.

Stock in the market

The continued surge in prices of low-emission vehicles can be attributed to supply and demand. On Auto Trader, the UK’s largest automotive digital marketplace, AFVs currently account for just 1% of stock listed, whilst petrol and diesel account for 52% and 47% respectively.

In next week’s webinar we’ll be joined by @mikejonesase to talk through what the latest budget means for retailers. We’ll also discuss what independent and franchise retailers can learn from each other as they prepare to reopen physical forecourts > https://t.co/rKjsWxrWjN https://t.co/tTxqOKW63A
Our teams were delighted to be a part of #BreakoutForBen, raising £12,225 towards the staggering total achieved by all who took part @BenSupport4Auto https://t.co/JqHkpGF9cE
To celebrate #InternationalWomensDay on Monday 8th March, we'll be hosting a webinar centred around this year’s theme #ChooseToChallenge. Find out more and register at https://t.co/z83jRsYDtp https://t.co/Yfvh2KkK1A
Our Data & Insight Director @therickw shares our latest audience data along with what we are seeing in terms of overall market and retailer performance. https://t.co/r5vdGHI1UM
In our next webinar we welcome back @mikejonesase ,chairman of @ASE_Global, to give the latest update on government financial support and answer your questions which you can pre-submit by following the instructions below. https://t.co/al6EzwaeJ3
Whilst the latest data from the @SMMT shows new car registrations were down -35.5% last month, we’ve seen a significant increase in new car engagement on our marketplace. https://t.co/NWLpyJ1j2W
Our Retail Price Index, which is based on daily pricing analysis of circa 900,000 vehicles, revealed the average price of a used car in February was £14,096: a YoY increase of 6.6%. https://t.co/HrAEkAqpOV
From May 1st admin fees will be displayed on your full-page adverts. Fees will not appear in search pricing until later this year. https://t.co/ernaPgaJsL
Buyer's confidence in being able to afford their next car remains extremely high. https://t.co/ktR6FungW8
First up our Data & Insight Director @therickw shares our latest audience update. Last week audience grew 8.8% compared to the same time last year, with our marketplace seeing an average of 1.4 million users each day last week. https://t.co/fNyeiSr1AG

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