Used car prices have increased over the past 12 months with costs above £13,000
Used car prices increased from £12,976 in December 2018 to £13,542 a year later in a £564 rise. However, once charges on the type of vehicles were taken into account, like-for-like prices were down 3.3 percent.
- Used cars for sale are the best value in this area
Speaking to Express.co.uk, AutoTrader said although the increase was not good for consumers the price rise was good for the used car motoring market.
It said the increase provided stability for the market and would boost confidence in the sector.
Ian Plummer, Commercial Director at AutoTrader said: “Lower consumer confidence, global economic uncertainty, as well as the adjustment of market values all proved challenging for the industry in 2019.
“But despite the tough environment, the used car market has shown its resilience as transactions remain stable, and prices held up over the year.”
According to AutoTrader, July 2019 saw the biggest decline in the used car price growth since 2012.
The group said used car prices went above the £13,000 threshold in August and average prices continued to increase throughout the end of last year.
According to finance company Cap HPI, the used car market outperformed expectations in December 2019 as prices remained strong.
The average cost of a car three years old and with 60,000 miles on the clock fell by just 9.2 percent in the period to record the strongest December since 2012.
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The group revealed some city cars and supermini vehicles had increased in value by around £50 in great news for the market.
Derren Martin, head of valuations UK at Cap HPI said: “As we move into 2020, initially at least, we are likely to see a stable or even strong used car market.”
Data from AutoTrader’s Reality Price Index also monitored where motorists were spending their money in the car market and highlighted trends to watch out for into 2020.
Sales of electric cars
According to AutoTrader, the demos died electric vehicles increased in December 2019 when compared to 12 months prior.
The car marketplace revealed they had seen 78 percent more searches for electric cars when compared to statistics in December 2018.
- Check for this vital car part on a used car or get fined £1,000
The data showed there could be a surge in sales for electric and alternative fuelled vehicles (AFV) heading into the next decade as demand continues to rise.
Ian Plummer added: “AFVs and zero-emission vehicles have grown in popularity over the last year and looking ahead, with the ongoing rhetoric around emissions and climate change, we expect this to continue on its upward trajectory.
“With 24 new EV’s coming into the market in 2020, we may well see older models become more affordable in the used market soon.”
AutoTrader has recorded an increase in the volume of premium brand cars across their marketplace with an extra 9.2 percent vehicles compared to the previous December.
Demand is up by 15 percent year on year however average like-for-like prices reduced by 2.2 percent in a massive win for prospective buyers.
The car marketplace says the sale of premium vehicles is faring more favourably than the overall market average.
SUV’s still popular
The supply of SUV’s has increased with 14.6 percent more cars put up for sale in December 2019 than the previous year.
Supply has beaten demand which in turn has caused a like-for-like price reduction of 4.4 percent.
AutoTrader also reveals prices of SUV machines fell as the age of the cars increased as experts suggest the vehicles of not hold their value as well as younger designs.
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