Auto Express

Strong demand set to keep used prices high


USED car prices aren’t likely to fall to pre-Covid levels this year, experts have suggested, because new-car availabili­ty remains hampered by supply-chain issues.

Prices of second-hand motors fell by six per cent between March and November 2022, according to AA Cars, but long lead times and the cost-of-living crisis are driving customers who would typically buy new to the used market.

Mark Oakley, director of AA Cars, told Auto Express: “This relatively stable demand, coupled with weaker supply, means drivers should not expect to see prices fall back to their pre-pandemic levels in 2023.”

Sue Robinson, chief executive of the National Franchised Dealers Associatio­n, echoed this: “NFDA predicts that used car values may soften a little, but we’re not expecting a slump in 2023 while supply constraint­s are still prevalent, particular­ly for popular cars up to three years old.”

Neil Williamson, CEO of Jardine Motors Group, predicted “around a one to two per cent reduction in the value of each car per month”. Meanwhile Mike Hawes, chief executive of the Society of Motor Manufactur­ers and Traders, said the easing of supply-chain issues would free up the usedcar market, but that demand will remain strong.

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New-car supply issues are keeping used values elevated

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