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Keep your customers protected as used car prices continue to climb

Current economic turbulence has done little to slow down consumers’ appetite for used cars, as demand continues to push prices higher. There have now been 30 consecutive months of growth for the average price of a used car, according to the latest data from Auto Trader.

In September, that was a rise of 11.2% on a year-on-year like-for-like basis. When looking month-on-month, prices rose from an average £17,039 in August to £17,409 in September. Over the last two years, motorists will have seen the value of their car surge over £3,300. When compared to pre-pandemic August 2019, that’s an increase of £4,000.

Is a price crash on the way?

According to Auto Trader’s editorial director, Erin Baker, there has been a lot of speculation suggesting the used car market is in decline and that prices are on the verge of crashing. However, the business’s Retail Price Index, which is based on daily pricing analysis of around 1.3 million vehicles (the largest of its kind) tells a different story.

Erin said: “Our marketplace data tells a completely different story with used car values continuing to record growth. The robust levels of consumer demand in the market, combined with the ongoing challenges in supply, means that not only will used car values remain strong for the foreseeable future, but consumers are in a very strong position to get the best price when selling or part-exchanging their car.”

Used cars prices are not only rising – they’re selling faster too

Another indicator of the healthy used car market is the speed they’re leaving retailers’ forecourts, according to Auto Trader. Their data shows the average is just 26 days to sell in September, two days faster than August, and the fastest since October 2021.

One-way retailers can keep pace with the accelerating turnaround time is to improve the attractiveness of their stock – for example, by offering customers valuable aftercare products that protect their investment. That could be an extended warranty, service plans, and more. Partnering with an award-winning provider, such as Car Care Plan, ensures the highest quality service and products.

So, if you’re wanting to maximise your used car sales, get in touch with our friendly team to learn more.