Auto Dealer reviews {that a} fortieth consecutive month of year-on-year used automotive worth progress now leaves the common second hand automotive some £4,000 dearer than in April 2020 when costs started to climb.

Its Retail Worth Index information for July, primarily based on circa 800,000 every day pricing observations throughout the entire retail market, confirmed a 2.4% year-on-year uplift to £17,920.

Its information contrasts with latest claims within the used automotive wholesale sector that values are dropping. Cap HPI final week reported a 1.9% fall in values throughout July.

Auto Dealer famous that July’s provide of used automobiles was down 1.5% whereas demand was up 11.5%, driving the worth progress.

It stated the availability constraints are impacting 3–5-year-old gross sales essentially the most, with gross sales down 15% within the second quarter of this yr; in distinction, the availability of automobiles beneath a yr previous is over 50% greater than a yr in the past.

Within the 1-3 yr previous cohort, electrical makes up an growing share and with provide outstripping demand for these automobiles the general image for 1-3 yr previous provide is a 2.8% year-on-year worth drop.

Auto Dealer’s director of knowledge and perception, Richard Walker, stated: “Regardless of the doubters, pricing within the used automotive market continued its future of progress in July, albeit at a barely slower tempo. The present dynamics of the market, with strong buyer demand and decrease provide ranges than historic requirements, means we don’t see any indicators of this slowing within the information.

“We do see used automotive provide persevering with to enhance and with issues over the present well being of the financial system and the eventual impact of rate of interest rises, we proceed to trace the info intently.

“Primarily based on what we’re seeing within the information into August, we stay assured over the well being of the marketplace for the approaching month.”

July marked additional decreases for electrical car values (EVs), with the common retail worth £31,568 falling 21.3% YoY to mark a seventh consecutive month of YoY decline.

Since their peak in July final yr (£40,728) costs have dropped greater than £9,000, which is definitely excellent news for customers because the automobiles change into extra inexpensive.

It stated that in distinction with the dynamics of the general used market, client demand for second-hand EVs has been strong however unable to maintain tempo with the sharp improve in availability – hovering 173.6% YoY in July and driving down costs because of this.

The autumn within the EV market contrasts with a £595 or 4.7% rise in costs to £16,448 for petrol fashions, and a 4.9% improve in the price of common diesel automobiles to £16,571 in comparison with 12 months earlier.