Record price rise for used cars

Used car prices increased by a record 4.4 per cent in the UK in June 2021, when compared to the sticker prices on vehicles during the previous month.

The rise is the highest since records began in 1988 and contributed to a 2.5 per cent annual increase in consumer prices.

The Office for National Statistics (ONS), which released the latest figures, says the extra spending on second-hand vehicles came as more consumers were steering clear of public transport. 

Used car prices are increasing in many countries, including the US and Japan, with production delays for new vehicles one of the key factors.

The ONS says: “This latest movement comes amidst reports of increased demand as dealers open following the latest national lockdown, together with a global semiconductor shortage affecting the production of new cars, resulting in consumers turning to the used car market.”

Carmakers in the UK built just under 360,000 cars in the first five months of 2021, reports Bloomberg. 

This is an increase of 39 per cent from a year ago when Covid-19 disrupted the industry, but remains 23 per cent below the levels from the same period in 2019.