Click to Enlarge.
Remarkably strong levels of consumer demand in the UK vehicle market are continuing to result in record price growth. Based on the ~400,000 used vehicles currently advertised on its marketplace, the average price of a used car increased 15.2% year-on-year (YoY) on a like-for-like basis last week (as of w/c 9th August 2021). This is according to the latest data from Auto Trader.
“It not only marks 66 weeks of consecutive price growth, but a huge acceleration on what is now a comparatively conservative 5.7% increase recorded during the week of 12 April when physical forecourts (that’s dealerships in ‘Merican – editor) reopened,” said Auto Trader.
Highlighting how high the level of demand currently is, there were over 15.8 million cross platform visits last week to Auto Trader, which was a significant 32% increase on the same week[1] in 2019. There was also an 18% rise in the hours (2.3 million) consumers spent researching their next car on the marketplace.
As a result of this increased activity on site, the average number of leads being sent to retailers grew 68% compared to the same period in 2019. This reflects strong levels of demand in the market, as well as the continuation of online retailing trends, with consumers choosing to make contact before visiting a forecourt. In recent research, 80% of consumers told Auto Trader that they would contact a retailer before turning up on a forecourt, suggesting the days of the ‘walk in’ is over.
The exceptional used car demand has been given a further boost by the growing supply constraints seen in the new car market, forcing many would-be brand-new buyers to look for a second-hand alternative. In fact, Auto Trader research conducted this month revealed that nearly half (46%) of new car buyers would not be prepared to wait for more than a month for their preferred vehicle; 74% would be open to purchasing a used car alternative if their brand-new choice wasn’t available within their desired time-frame.
Auto Trader’s new car market forecasts for this year predict a new car market of 1.8 million vehicles, but the underlying consumer confidence and unemployment data suggests the market would be close to 2.4 million if supply challenges were not an issue. This suggests there’s up to circa 600,000 would-be new car buyers that may be looking to the used car market for alternatives.
“Used car demand is being fueled by many factors, not least consumer confidence, low unemployment levels, concerns about safety on public transport, but now also the supply constraints we’re seeing in the new car market. We estimate there are up to 600,000 new car transactions that won’t happen this year because of these constraints, with many consumers looking to used car alternatives. This suggests we can expect a sustained period of positive used car demand,” said Auto Trader’s Data and Insights Director, Richard Walker.
1 It’s now more accurate to compare the current performance against 2019 given the growing impact of COVID-19 this time last year, in this instance 9-15 August 2021 versus 12-18 August 2019.
About Auto Trader
Auto Trader Group plc is the UK and Ireland’s largest automotive marketplace. Our marketplace sits at the heart of the car buying process, with the largest number of buyers and the biggest choice of trusted stock. Auto Trader exists to change how the UK shops for cars by providing the best online car buying experience and enabling all retailers to sell online. We are building stronger partnerships with our customers, using our voice and influence to drive more environmentally friendly vehicle choices and creating an inclusive and diverse culture for all of our people. Auto Trader listed on the London Stock Exchange in March 2015 and is a member of the FTSE 100 Index.
Global Village – Record UK Used Car Prices. Demand High
Click to Enlarge.
Remarkably strong levels of consumer demand in the UK vehicle market are continuing to result in record price growth. Based on the ~400,000 used vehicles currently advertised on its marketplace, the average price of a used car increased 15.2% year-on-year (YoY) on a like-for-like basis last week (as of w/c 9th August 2021). This is according to the latest data from Auto Trader.
“It not only marks 66 weeks of consecutive price growth, but a huge acceleration on what is now a comparatively conservative 5.7% increase recorded during the week of 12 April when physical forecourts (that’s dealerships in ‘Merican – editor) reopened,” said Auto Trader.
Highlighting how high the level of demand currently is, there were over 15.8 million cross platform visits last week to Auto Trader, which was a significant 32% increase on the same week[1] in 2019. There was also an 18% rise in the hours (2.3 million) consumers spent researching their next car on the marketplace.
As a result of this increased activity on site, the average number of leads being sent to retailers grew 68% compared to the same period in 2019. This reflects strong levels of demand in the market, as well as the continuation of online retailing trends, with consumers choosing to make contact before visiting a forecourt. In recent research, 80% of consumers told Auto Trader that they would contact a retailer before turning up on a forecourt, suggesting the days of the ‘walk in’ is over.
The exceptional used car demand has been given a further boost by the growing supply constraints seen in the new car market, forcing many would-be brand-new buyers to look for a second-hand alternative. In fact, Auto Trader research conducted this month revealed that nearly half (46%) of new car buyers would not be prepared to wait for more than a month for their preferred vehicle; 74% would be open to purchasing a used car alternative if their brand-new choice wasn’t available within their desired time-frame.
Auto Trader’s new car market forecasts for this year predict a new car market of 1.8 million vehicles, but the underlying consumer confidence and unemployment data suggests the market would be close to 2.4 million if supply challenges were not an issue. This suggests there’s up to circa 600,000 would-be new car buyers that may be looking to the used car market for alternatives.
“Used car demand is being fueled by many factors, not least consumer confidence, low unemployment levels, concerns about safety on public transport, but now also the supply constraints we’re seeing in the new car market. We estimate there are up to 600,000 new car transactions that won’t happen this year because of these constraints, with many consumers looking to used car alternatives. This suggests we can expect a sustained period of positive used car demand,” said Auto Trader’s Data and Insights Director, Richard Walker.
1 It’s now more accurate to compare the current performance against 2019 given the growing impact of COVID-19 this time last year, in this instance 9-15 August 2021 versus 12-18 August 2019.
About Auto Trader
Auto Trader Group plc is the UK and Ireland’s largest automotive marketplace. Our marketplace sits at the heart of the car buying process, with the largest number of buyers and the biggest choice of trusted stock. Auto Trader exists to change how the UK shops for cars by providing the best online car buying experience and enabling all retailers to sell online. We are building stronger partnerships with our customers, using our voice and influence to drive more environmentally friendly vehicle choices and creating an inclusive and diverse culture for all of our people. Auto Trader listed on the London Stock Exchange in March 2015 and is a member of the FTSE 100 Index.