If you’ve been in the market for a used car, you might have noticed that the overall price of used vehicles is going up. Recent data shows that the average value of a used car has risen by £4,000 in February, bringing the cost to £17,654 – but why? And with these rising prices, is now really the time to buy a used car or are there other alternatives?
Though falling trade values for used electric vehicles (EVs) mean it could be worse, some believe that you’re better off buying a new car as you won’t be making the usual, significant savings with a second-hand vehicle. It could be worth companring the prices of a used vehicle with new ds3 cars for sale for example to see difference in price.
Here are the highlights of what has been happening to the UK used car market to help you figure out whether it’s the right time to buy:
Rising prices
We’ve established that used car prices are increasing, up 2.3 percent year-on-year. This can largely be attributed to growing consumer trust in purchasing second-hand cars and the struggle of car companies to build new vehicles in recent years.
With people looking for alternatives to replace current transport, consumers are looking at used cars which are driving up the prices. This comes as no surprise as there are nearly 13,000 used car dealerships across the country and an estimated 7.53 million sold nationwide.
With the ongoing conflict in Ukraine, further strains have been placed on the manufacturing supply chain. The car industry is being directly impacted by the sanctions being placed upon Russian companies and missing the parts and materials usually supplied by Ukraine and Russia.
How are EVs affecting the market?
The falling prices of EVs have slowed down the used car market and are acting like dead weight. In no uncertain terms, this means that the price rise for used cars would have been worse. The average price of a second-hand EV has decreased by 13 percent over the last year to £33,060 as more supply enters the market.
Some notable models of EVs have experienced a double-digit figure drop and are resulting in potential losses into the thousands. Oversupply seems to be the root cause of this drop rather than falling consumer interest and many traders are encouraging consumers to buy EVs using incentives and marketing techniques.
Is it time to buy?
Knowing the right time is key to getting a good deal when it comes to used cars. With the rising prices, it may be in your best interests to wait for quieter periods in the used market or make the leap to buying brand new.
