Are second-hand cars still in demand?

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), added: “The used car market continues to function in good stead; values are rising, supply is improving, and demand is robust.

Is there a demand for second hand cars?

The strength of the second-hand market has been driven by supply issues since Covid and its impact on new car production and the subsequent shortfall in used cars returning to the market Compared to 12 months earlier, the supply of used cars was down 1.5% in July and demand up 11.5% YoY in July, supporting price growth ...

Is the second-hand car market still high?

The ratio of used-to-new transactions averaged 3.37:1, rising to 4:1 during the pandemic-induced pause in new car production. “Current trade values remain unrealistically high despite the recent trade drops,” he explained.

Will 2nd hand car prices drop in 2023 UK?

Whilst used car valuations are falling (used prices fell by 2% in August 2023) there are no signs of an impending 'price crash'. This has led to many people pondering the question, “When will car prices drop?” In this guide, we will analyse the current market trends for car prices.

Is there a shortage of second hand cars in UK?

Used car supply shortages continues to be the biggest challenge facing dealers in 2023. May's Startline Used Car Tracker shows that 84% of dealers believe it is their number one concern.

Used car prices drop 4.2% AGAIN in November – latest analysis

Will 2nd hand car prices drop in 2024?

When it comes to used car prices, supply and demand drive the market. In 2023 and 2024, it's the reduced supply of used cars that ensures prices will remain elevated. Used car prices rose 36% in 2021, only to fall 7% the year after.

Are second hand cars still holding value?

Traditionally a car loses value as soon as you drive it off the retailer's forecourt. But this imbalance of supply and demand for used cars means their value is increasing, and becoming an appreciating asset. For many people, this means the car sat on their driveway could be worth more than they originally paid for it.

What is the future of second hand car prices?

He predicts used car prices in 2024 could end the year around one to two per cent higher than where they finish 2023. 'It should be noted that further market adjustments, slightly more than normal seasonal expectations, are expected between now and the end of this year, though,' he added.

Are UK second hand car prices still high?

According to the abovementioned data from AutoTrader, one in five 'nearly new' used cars is worth more than its brand-new counterpart. In simple terms: Prices surged a lot in 2021. They eventually stopped increasing at such alarming rates, but they never came back down. Now, they're gradually on the rise again.

Are used car prices in the UK dropping?

Used car values have slipped a further 1.5% on average since Cap HPI reported a 4.2% fall in October, the largest drop in a single month for more than a decade. The average value of a used car at three years, 60,000 miles, fell by £850, in October.

Will used car prices fall in 2024 UK?

“We anticipate demand increasing in January and February, which will give the remarketing sector a strong start to the year,” he added. And such increased demand for used cars in early 2024 will break the cycle of gently falling prices that the market has seen for the past 18 months.

Why is the second-hand car market booming?

Semiconductor chip crisis

The global semiconductor chip shortage saw the value of second-hand cars skyrocket, with this being most sharply felt as the UK emerged from its third lockdown in April 2021.

Why is the second-hand car market so strong?

One of the main reasons for the rise in the price of used cars is the shortage of new cars available. Anyone who wants to buy a new car is more likely to turn to the used car market to avoid long waiting times. The AutoTrader website was visited 79.2m times in July 2023, up by more than 16% compared to July 2022 [2].

Is now a good time to buy a second hand car?

Dealerships see family cars in demand throughout the whole year ( even during school holiday times ). Our general advice is to shop for a used family car between October to December to get the end-of-the-year deals, however, your best bet is also to keep an eye out on the local dealerships near you.

Is it greener to buy a second hand car?

Driving a second-hand car reduces the negative environmental of manufacturing a new car. Before buying a car, look at what the fuel consumption of the vehicle is like. If it's low, then it's better for the environment.

Do second hand car dealers haggle?

It's not just the cost of the car itself you can haggle on, but also the price of your existing car if you're looking to part exchange. There's often more scope for negotiation when it comes to this, too, because dealers can often be more fixed on the selling price than the buying price.

How much does a good second hand car cost in UK?

One example given by the firm took the Volkswagen Golf and looked at prices of cars aged between 2018 and 2022. In Hull, the average price was £18,639 whereas in London the same model was listed for an average price of £22,511. Cargurus says used car buyers could therefore save around £3,800 buying in cheaper cities.

Which cars have resale value in UK?

Will cars be cheaper in 2030?

Recent research states that by 2030, you could buy an electric vehicle for around half the price of petrol cars.

Are car sales slowing down?

The post-pandemic economy has seen interest rates rise significantly, which has slowed all vehicle sales — not just EVs. But, as they tend to be more expensive than an equivalent combustion vehicle, EVs are feeling the pinch extremely hard.

What is the trend in the UK second-hand car market?

UK used car market falls -18.8% in Q2 2022 with 1,759,684 cars changing hands. First half transactions down -8.3% on last year and market now -12.8% year to date behind pre-pandemic 2019. Battery electric vehicles (BEVs) see boost of 57.1%…

What will happen to cars after 2030?

As the 2035 ban on petrol and diesel cars only impacts new cars, you will still be able to buy and sell used petrol and diesel cars after 2035. So, should you choose to change to another petrol or diesel car, as long as it's pre-loved, you can still buy another car without moving to electric or hybrids.

What will happen in 2030 to cars?

When will diesel and petrol cars be banned? The ban on sales of new models is due to come into place in 2030, with new hybrids being given a stay of execution until 2035 on the condition their zero-emission-mode can cover a significant distance, although this distance hasn't been set by the government yet.

What will happen to classic cars after 2030?

In all likelihood, what will happen to classic cars after 2030 instead is that they will become increasingly expensive to run as petrol and diesel usage dwindles and prices for combustion fuels skyrocket. That will make running a classic car even more of a luxury than it already is.

Will petrol still be available after 2040?

However, we know that the rise in electric vehicles doesn't mean the death of diesel and petrol. Petrol stations are still very much needed and will still be needed after 2040.