Used car asking prices are now 30% higher than a year ago
The ongoing supply pinch in the used car market is continuing to force prices higher, with asking prices for pre-owned cars climbing 7.9% in the first three months of this year compared to the same period in 2021.
That is according to listings website DoneDeal, which said the inflation represents the tenth consecutive quarter that prices for second hand cars have increased.
Overall, the annual rate of asking price growth in the used car market is now running at 30%, the company claims.
When compared to pre-pandemic levels, used cars are now 53% more expensive.
The used car market has been hit by something of a perfect storm in recent years.
The pandemic has disrupted supply chains for new cars and this has now fed through to the availability of used vehicles.
Brexit also had a significant impact, cutting in half the volume of used cars that are being brought in from the UK.
At the same time, the wave of used cars on the market arising from new cars sales during the Celtic Tiger years has petered out.
In particular this is impacting the lower end of the used car market.
Dr Tom Gillespie, the author of DoneDeal’s Motor Price Index, added that the war in Ukraine has further exacerbated the problems in the supply chain, pushing inflation up more.
It has done this by disrupting production of new cars and components in Ukraine itself and by driving up oil prices, which in turn is making consumers consider cars that are cheaper to run.
The result, Mr Gillespie said, is upward pressure in the second-hand market for used electric vehicles and hybrids.
Listed prices for used electric vehicles are now 19% higher year on year and hybrids are up 25%.
Over 5 million vehicle listings between 2011 and 2022 were examined as part of the analysis.