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Used car prices on the rise – protect your customer’s investment

Used car prices on the rise – protect your customer’s investment

Used car prices soared at the end of 2018 – increasing by 5% over the previous year, setting an average price of £12,542. Both diesel and petrol used car prices increased, by 3% and 7% respectively, according to online car marketplace Auto Trader.

The increase was welcome news for used car retailers, as diesel sales continue to fall, with a 30% decline in new diesel registrations last year, according to the Auto Trader Retail Price Index. Searches for diesels on the Auto Trader website also fell by 18% – dropping 40% since 2016.

Used car prices remain buoyant

The average retail price of a used petrol car was £10,550 in 2018 – the biggest climber of the year. The average used diesel price was £14,390, showing a more modest increase on 2017.

Meanwhile, the average sticker price of second-hand Alternatively Fuelled Vehicles (AFVs) in 2018 was £20,078 – a 6% increase on 2017. Searches for AFVs and and Electric Vehicles (EVs) increased by 129% last year – or 179% in just two years.

Karolina Edwards-Smajda, Auto Trader’s Commercial Product Director, said: “2018 has been a challenging year for the industry on a number of fronts, not least the ongoing economic uncertainty surrounding Brexit, fuel type confusion and new WLTP regulations.

“However, despite these hurdles second-hand vehicles are not only holding their value but are in fact increasing. It reflects not only the health of the second-hand car market, but with ever increasing prices, just how fundamental to the buying process finance has become, to both new and used cars. Getting that right will be key to growth in 2019.”

Visit the Auto Trader website for further information on their Retail Price Index 2018.

Protecting a customer’s investment in their used car

With used car prices rising, customers have a greater level of investment in their vehicles. Resale values have increased, adding greater incentive for them to ensure their investment is protected throughout their ownership. Products such as GAP insurance and extended warranty can provide your customers with peace of mind and help build loyalty.

Car Care Plan is a leading provider of vehicle warranty and asset protection products, supplying to over a million motorists in more than 50 countries. If you want to learn more about motoring financial aftercare, download our free guide.

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