Motor Trade Insurance

Are Used Car Prices Increasing?

July 19, 2021 by mti

According to Startline Motor Finance that provides finance for motor vehicles, it would appear that the average amount paid by motorists to purchase a used car has been increasing in the pandemic. This will no doubt be of interest to motor traders who are involved in the buying and selling of second hand cars.

Apparently, in May 2020, the average amount paid for a used car was £7,837 that Startline Motor Finance had provided hire purchase for compared to an average of £8,699 in May 2021. That equates to a rise of 10.99% – a significant increase.

It is also interesting to read that the average age of a used car that Startline Motor Finance had provided hire purchase for in May 2020 was 35.2 months compared to 38.2 months in May 2021. That equates to a rise of 8.5%.

There will probably be a number of factors that have resulted in the above with the pandemic no doubt playing its part. One factor could be if motor traders have been struggling to obtain used cars to sell, perhaps because motorists have been holding onto their vehicles in view of the financial uncertainty presented by the coronavirus pandemic here in the UK, this has resulted in the value of used cars increasing and their ages.

It is going to be interesting to see what happens to used car prices in the coming months as we hopefully come out of lockdown shortly. With more people probably returning to the office will this encourage some to change their motor vehicles for a more up to date second hand vehicle?

Motor traders involved in both the sale of used and new cars will be hoping for an improvement in business. This should also lead to an improvement in business for other areas of the motor trade industry such as parts suppliers and garages carrying out servicing and repair work. We will endeavor to keep our readers up to date with relevant statistics.

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