Retail Price Index data from the online automotive marketplace showed that the average car advertised on its platform last week cost £20,340, an increase of £4,200 in just six months.
This was 93rd consecutive week of price growth on Auto Trader due to ongoing vehicle supply shortages and strong customer demand. The price increases last month coincided with rising inflation in the UK, which hit 5.5% last month, the highest rate in three decades.
Richard Walker, director of data and insights, said: “Inflation will always be a potential headwind for demand, but the positive consumer metrics we’re tracking, as well as broader economic factors such as the falling unemployment rate and record number of job vacancies, suggest that any significant easing is unlikely any time soon.”.
“Accordingly, with such strong levels of demand, and no end in sight for the current supply challenges, we can expect the strong year-on-year price growth to continue well into the middle of the year.”
Last week, a number of the family-friendly models were again the most highly praised vehicles in the UK, despite the segment being out of favor with OEMs now focused on SUVs and electric vehicles (EVs). The Seat Alhambra, Ford S-Max and Renault Grand Scenic were among the best-performers.
The Cupra Formentor and Porsche Taycan EV, which are nearly new, are the most depreciating models on Auto Trader – though by just 2.7% and 5.4% respectively – while the Mercedes-Benz G Class is the platform’s weakest performer with a decline of 22.6%.
Auto Trader said that an average selling time of just 26 days – a slight slow-down on the average 25 days recorded in pre-COVID February 2020 – was one indicator of the strong consumer demand.
In addition, the company’s recent consumer sentiment survey revealed that 26 percent of 4,100 respondents intend to purchase a vehicle within the next three months, while 37 percent intend to purchase it within two weeks, up from 35 percent in December.