Press release

Continued price strength reflects confident outlook for market health

The latest pricing update from Auto Trader's marketplace 

Despite the current lockdown restrictions in place across the UK, the latest data from Auto Trader revealed used car prices remain very strong. Based on the circa 514,000 vehicles advertised on its marketplace, last week (8th – 14th February) average prices increased 6.5% year-on-year (YoY) on a like-for-like basis. Whilst the rate of growth has slowed slightly since the peak of 8.5% in mid-December (w/c 21st December), it marks 41 weeks of consecutive price growth.

Although there’s some continued pressure on supply, the lockdown is having less impact on demand than previous lock downs. Last week, there were 14.2 million visits to Auto Trader, which is an increase of 4.5% on the same period last year and consumers spent a total of 139.6 million minutes on the marketplace, up 4.4% YoY.  

Retailers hold firm

Looking at the pricing behaviour of retailers last week, the number of those making price changes and the value of their adjustments is generally in line with pre-COVID levels and consistent with what would normally be expected in January and February.  

Last week an average of 2,448 retailers made daily price adjustments, which is just four fewer than the same period last year. A total of 17,608 vehicles were repriced during the week, and in terms of the adjustments being made, the average reduction was £290, which is at the lower end of the £250-£550 typically adjusted during normal trading conditions. It’s indicative of retailers holding firm with their pricing strategies.

Commenting, Auto Trader’s director of data and insight, Richard Walker, said: “Whilst the current challenges are clear, we continue to see reasons for positivity, and expect to see another period of healthy retail demand once restrictions are eased. In addition to the strong consumer metrics we’re recording on our marketplace, there are a number of key external factors which will help drive strong automotive demand post lockdown. These include positive sentiment towards car ownership, the ongoing aversion to public transport and reduced spending in other retail categories.

 “What’s more, the latest Bank of England findings show average household finances are better off than they were pre-pandemic. This reflects our own research which suggests consumers' confidence in being able to afford their next car was at its highest level since we began tracking it in January 2020.”

Diesel and petrol price growth eases   

Looking at the data on a more granular level, the movements in petrol and diesel prices largely mirror the wider market, with both recording robust rates of growth, albeit slowing slightly on previous weeks.

The average price of a used diesel car increased 8.7% YoY last week, which was a marginal decrease on the 8.8% recorded the week before. Used petrol prices grew a more conservative 6.0% YoY, however, it marked a slightly steeper easing on the 6.4% the prior week.  

Our CEO Nathan Coe will be live on next week's webinar to answer your questions. You can submit your questions to him in the comments and when you register to join the webinar live at https://t.co/rdtNiD8APu https://t.co/d99VfhPofQ
Last week saw the 89th week of consecutive used car price growth, with prices rising 28.6% year-on-year. With used car prices continuing to rise it’s crucial to keep repricing your stock inline with the market to ensure you aren’t leaving profit on the table. https://t.co/MRHJVoNvzs
2021 was a record year for new electric vehicles on our marketplace which saw a record number of advert views in 2021, with 1 in 5 new car advert views now for an electric vehicle. What EVs do you think we'll see drawing the most attention in 2022? https://t.co/niblnnJaPl
Looking to evolve your business by breaking free of outdated data feeds and enabling your customers to have a real-time view of your digital forecourt? Then check out our ‘Essentials to connected retailing’ masterclass now 👉 https://t.co/VggO5GDvFa https://t.co/hRUW9aXDTf
We’re still faced with an element of uncertainty when it comes to the pandemic which means you need to be prepared for any eventuality. So in this week’s tip of the week, @AndrewKorpela shares some top tips on how to make sure you're prepared for whatever is thrown at you next. https://t.co/9cKawLT6Q9
In his latest update, our CEO Nathan Coe shares our latest market insights, including an analysis of consumer demand and pricing, and reveals our plans for 2022. https://t.co/oyxwpJf2U1
With record numbers of new electric vehicle sales and, as we reveal in our latest blog, an electric vehicle being the fastest selling of any used vehicle in 2021, last year really was a victory for voltage 👇 https://t.co/j4Al3nByBL
In our latest Monthly Market Intelligence Report, we analyse the 3 key trends that came to define the automotive industry in 2021, record demand, the growth in used car prices and the acceleration of EV adoption 👉https://t.co/tVW6vpQjxm Will these trends continue through 2022? https://t.co/rITl15odBm
A quick summary of what we have covered in today's webinar from @ClarkRjoclark. https://t.co/QFgNQYhCR8
Prices then are still strong, but we are still seeing under-priced stock on our marketplace which means there is profit being left on the table. It's key then to monitor the live market prices and re-price to the live market value to avoid missing out on profit. https://t.co/3jGvyFVPIn

Auto Trader Group plc
Registered in England (Company number: 09439967)

Auto Trader Limited
Registered in England and Wales (Company number: 03909628)

Registered address:

1 Tony Wilson Place
Manchester
M15 4FN
VAT number: GB 614 8918 20

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