Auto Dealer’s Retail Value Index has proven that the typical retail worth of used automobiles has elevated by 3.5% in comparison with final yr’s ranges, which had been already 24% larger than in 2021.

This surge represents the biggest year-on-year progress fee since November. 

On a month-on-month foundation, costs have risen by 0.3%, surpassing seasonal norms. As compared, costs fell by 0.9% throughout the identical interval in 2019.

Notably, older autos aged ten years or extra have seen probably the most vital progress, skyrocketing by an enormous 9% year-on-year.

Richard Walker, director of information and perception at Auto Dealer, expressed a cautious however optimistic outlook for the approaching months.

“Though the financial backdrop is a regarding one, based mostly on our metrics, the rising squeeze on family funds, which will probably be exacerbated by the most recent rise in rates of interest, is having a restricted influence on automotive shopping for demand.

“Regardless of potential headwinds, our shopper analysis helps a cautious, however optimistic outlook for the months forward. Vehicles are, for the overwhelming majority of motorists, a basic want, versus a discretionary luxurious, so we consider the used automotive market will largely be shielded from wider financial disruptors.”

Whereas shopper demand for electrical autos stays robust, the speed of provide progress continues to outpace it, resulting in a contraction in retail costs.

The present values for electrical autos stand at £31,537, representing an 18.4% lower in comparison with the earlier yr. Nonetheless, there are indicators of stabilization within the used electrical car market, with the speed of decline slowing in comparison with Could’s figures (-18.6%) and solely barely larger than the drop seen in April (-18.1%).

In distinction, costs for used petrol and diesel-fueled automobiles have elevated by 5.8% and 5.4%, respectively, demonstrating their rising reputation.

The general acceleration in value progress could be attributed to the overwhelming shopper demand, which is surpassing the out there provide.

Auto Dealer’s information reveals that the quantity of inventory marketed on their platform is at present down by 4.5% in comparison with June 2022. In the meantime, demand stays strong and considerably larger than pre-pandemic ranges.

That is evident from the elevated shopper engagement on Auto Dealer, with cross-platform visits rising by 10% this month in comparison with the identical interval final yr.

The strong shopper demand is translating into transactions, as gross sales this month have seen a 6% year-on-year enhance.

With provide unable to fulfill demand, used automobiles are promoting quickly, taking a mean of simply 27 days to be offered. That is at some point quicker than in Could and 6 days quicker than the pre-pandemic interval in 2019.

Regardless of prevailing financial uncertainty, Auto Dealer’s newest shopper analysis signifies that shopper demand for automobiles stays robust.

Survey outcomes from in-market automotive consumers visiting Auto Dealer in June present that 85% of respondents really feel as assured about affording their subsequent automotive as they did the earlier yr.

Moreover, over three-quarters (77%) of holiday makers plan to buy a automotive throughout the subsequent six months, in step with earlier ranges.

The analysis additionally reveals that the present monetary squeeze has had little influence on the significance of automotive possession.

Ninety-six p.c of the two,000 survey respondents acknowledged that automotive possession is essential for his or her households, representing a rise from 95% final yr.

Apparently, for practically half of the respondents (47%), automotive possession has change into much more essential in comparison with 12 months in the past, whereas 50% acknowledged that it remained the identical, and solely 3% thought of it much less essential.

Amongst youthful consumers aged 17-34, automotive possession has change into extra vital for over two-thirds (68%).

Elements contributing to this progress embrace latest disruptions in public transport.

Almost half (46%) of the surveyed people acknowledged that automotive possession was essential to them as a result of unreliability of public transport, a rise from 34% two years in the past.

With no decision in sight for ongoing industrial actions affecting public transport, frustrations are anticipated to persist.

Though the latest enhance in rates of interest by the Financial institution of England has but to have an effect on automotive finance charges, Auto Dealer’s information reveals a major rise in consultant APRs on their market in latest months.

The typical consultant APR for brand new automobiles has elevated from 6% in Could 2022 to eight.4% final month, reflecting a 2.4% year-on-year enhance.

Equally, the APR for used automobiles has risen from 9.6% to 11.4% over the identical interval, representing a 1.8% year-on-year enhance.

Regardless of these will increase, the influence has been restricted, as the quantity of automotive consumers utilizing Auto Dealer’s automotive finance calculators has risen by 12% year-on-year and a outstanding 44% in comparison with pre-pandemic ranges.