Auto Dealer stories {that a} fortieth consecutive month of year-on-year used automotive value development now leaves the typical second hand automotive some £4,000 dearer than in April 2020 when costs started to climb.

Its Retail Value Index knowledge for July, based mostly on circa 800,000 every day pricing observations throughout the entire retail market, confirmed a 2.4% year-on-year uplift to £17,920.

Its knowledge contrasts with current claims within the used automotive wholesale sector that values are dropping. Cap HPI final week reported a 1.9% fall in values throughout July.

Auto Dealer famous that July’s provide of used vehicles was down 1.5% whereas demand was up 11.5%, driving the worth development.

It mentioned the availability constraints are impacting 3–5-year-old gross sales essentially the most, with gross sales down 15% within the second quarter of this 12 months; in distinction, the availability of vehicles underneath a 12 months outdated is over 50% increased than a 12 months in the past.

Within the 1-3 12 months outdated cohort, electrical makes up an growing share and with provide outstripping demand for these vehicles the general image for 1-3 12 months outdated provide is a 2.8% year-on-year value drop.

Auto Dealer’s director of knowledge and perception, Richard Walker, mentioned: “Regardless of the doubters, pricing within the used automotive market continued its future of development in July, albeit at a barely slower tempo. The present dynamics of the market, with strong buyer demand and decrease provide ranges than historic requirements, means we don’t see any indicators of this slowing within the knowledge.

“We do see used automotive provide persevering with to enhance and with issues over the present well being of the economic system and the eventual impact of rate of interest rises, we proceed to trace the info carefully.

“Primarily based on what we’re seeing within the knowledge into August, we stay assured over the well being of the marketplace for the approaching month.”

July marked additional decreases for electrical car values (EVs), with the typical retail worth £31,568 falling 21.3% YoY to mark a seventh consecutive month of YoY decline.

Since their peak in July final 12 months (£40,728) costs have dropped greater than £9,000, which is definitely excellent news for customers because the vehicles change into extra inexpensive.

It mentioned that in distinction with the dynamics of the general used market, shopper demand for second-hand EVs has been strong however unable to maintain tempo with the sharp improve in availability – hovering 173.6% YoY in July and driving down costs consequently.

The autumn within the EV market contrasts with a £595 or 4.7% rise in costs to £16,448 for petrol fashions, and a 4.9% improve in the price of common diesel vehicles to £16,571 in comparison with 12 months earlier.