Record used car price jumps recorded by Aston Barclay
14 July 2021
Author: Sean Keywood
Spiralling used car demand saw major jumps in prices across several sectors during the second quarter of 2021, according to auction firm Aston Barclay.
It said there had been a 25% increase in late and low mileage car values, to £18,350 on average, and a 16% rise for ex-fleet cars, to £12,109.
In addition, 55-75-month-old dealer part exchange cars were up by 17.3% to £8,435, and 78-125-month-old part exchanges were up by 9.5% to £4,113.
The only market sector to see a fall was cars over 126 months old, down by just £92 to £1,412, which Aston Barclay attributed to a 57% increase in volume during Q1.
Overall, Aston Barclay put the buoyant market down to demand continuing to exceed supply, because of the effects of the global semiconductor shortage on new vehicle production.
It said large order books were being reported by all leasing companies and manufacturers, while many business and personal contracts were being extended by six to 12 months to help manage the restricted supply.
Aston Barclay MD - customer Martin Potter said: "In over three decades of working in the remarketing sector I've never seen used car prices rise so dramatically in a three-month period.
"Many dealers are desperately short of stock which is compromising their businesses, but there is no change on the horizon."
Aston Barclay has also reported that used hybrid cars coming up for sale are typically in line with average fleet age and price, at 40 months and £13,000. However, used EVs are arriving at auction on average at just 12 months old and at an average price of £28,000, which is said to have hampered demand.
Potter added: "The majority of new cars being delivered into late 2021 and 2022 will be EVs so it will be interesting to see how demand from consumers for used zero-emission cars shapes up over the coming 12 months."