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.