2022 has been a challenging year with regards to new car supply and constantly rising costs, both from the manufacturers and cost of funds.
Customers at the end of their agreements have sometimes been shocked at the difference in cost for a comparable vehicle at renewal. However, clients who have had some kind of purchase agreement or finance lease have been amazed at the equity gained. We have had commercial vehicles worth more now than the discounted price we paid for them 3 years ago new.
Can this continue?
Motorists’ continued appetite for car buying has delivered another 5.1% increase in the value of the average used vehicle advertised for sale on Auto Trader.
Month-to-date to November 17 the average price of a used car rose around £300 to £17,863 on the same period in October as ongoing stock shortages continue to play out in a market that seems robust, despite the cost-of-living crisis’ impact on household finances.
On a month-on-month basis, used car prices have now been neutral or risen for five consecutive months on Auto Trader.
Many of the dealers we speak to on a daily basis are seeing signs of prices beginning to drop. On some cars this is significant.
My feelings are as new cars become more easily accessible, hopefully discounts will increase and used vehicle values will begin to get back to some level of normallity.
Should I sell now?
If changing a vehicle you own is in your future plans, we would suggest you take advantage of the current market and realise its inflated value whilst you still can.
We can give you a valuation on your vehicle and discuss a replacement if you wish. Just enter the details on our website at Part-Exchange or give us a call on 01277 354777 if you would just like a chat.