The worth of a used automobile rose 30.5% to £17,816 in 2021 with a December excessive.
In keeping with the Auto Dealer Retail Worth Index, December’s efficiency marked the twenty first consecutive month of development.
The document value enhance has been pushed by very excessive ranges of shopper demand out there, with one in 4 ‘practically new’ vehicles costing greater than model new counterparts.
Aside from the massive demand out there, the value hike has additionally been impacted by the continued provide challenges of latest and used vehicles together with international scarcity of semi-drivers.
The typical asking value of a ‘practically new’ automobile (these underneath 12 months) elevated by 45% in December 2019 in comparison with two years in the past, reaching a median value of £34,429.
The auto dealer mentioned the market was being pushed by two elements. The good demand for brand spanking new vehicles is nearly all the time because of the paucity of latest vehicles and the truth that the advisable retail value of a brand new automobile within the UK is preserved.
It added that though the demand is way larger than the availability, the costs of latest autos have seen a marginal enhance within the ‘sticker value’ or MRRP.
Richard Walker, AutoTrader Director of Information and Insights, mentioned: “2021 was a outstanding yr for the automotive business.
“Used automobile pricing noticed double-digit development and used vehicles took off from the forecourt in document time.
“Regardless of ongoing restrictions, our sector stays resilient to vital challenges and is on observe for sturdy sustained value development within the second half of the brand new yr.
“The 2 foremost elements driving this development, lack of provide and robust shopper demand, each present no indicators of easing anytime quickly. Claims of an impending ‘bubble burst’ are failing to take note of these key dynamics.”