Used car prices surge to highest monthly price rise in a decade
Cap HPI’s valuations expert said demand was even stronger than when showrooms reopened last summer.
Used car prices have seen their highest single monthly increase since 2009 as consumers rush back to dealerships following the third national lockdown.
Prices have gone up by an average of about two per cent, or £250 per car.
Derren Martin, head of valuations at Cap HPI, told the Car Dealer Podcast: “The market is so strong. It’s stronger than we’ve ever known.
“The word unprecedented has obviously been used a lot in the last few months or year but this is stronger than it was going into June last year.
“We’re going to move values up this month by around two per cent on average. That’s the largest single movement up since 2009 so it is absolutely going great guns out there.”
The price rises even outstrip what was seen in June 2020 following the first national lockdown. This is somewhat surprising, as the pandemic has forced dealers to embrace online sales models and home delivery and click and collect, something few could offer before lockdowns were put in place.
The sunny weather has pushed convertible prices above the average, increasing four per cent or £650 on average. Meanwhile, EVs bucked the trend by dropping 0.7 per cent.
Martin added that a lot of the rise was down to dealers replenishing stock in anticipation of increased demand, with one retailer reporting that 20 people were queuing outside his door on April 12, when dealers were allowed to reopen.
However, alongside pent up demand from lockdown, supply issues in the new car market are also helping bolster used prices. A global semiconductor chip shortage is making production difficult for many manufacturers, with Jaguar Land Rover announcing a week-long shutdown at two UK factories – Halewood and Castle Bromwich.
