17 November 2021
Are car retail prices about to drop?
AutoTrader have revealed all, with their experts talking about data patterns, price performances and market trends.
When looking at data patterns, AutoTrader doesn't just compare this week to last week; They compare this weeks data, to the same exact week from previous years, meaning they are able to easily compare and identify data patterns. This also means that AutoTader are looking at like-for-like prices at the same time every year.
According to data, Online adverts in 2021 are seeing a 2.6% rise compared to last year, and a 14.7% rise from the year before, revealed AutoTrader data analyst, Catherine King. Better yet, there has been a 39% rise in phone call enquiries, meaning Dealerships should be always be prepared to take a call!
AutoTrader's data and insight director, Richard Walker, reported on price performance whilst also factoring in age of vehicles and fuel type.
The data shown proves that diesel vehicle's have had the most consistent and highest price growth in 2021, however, within the past couple of months, petrol has began to overtake. Would it be surprising for you to hear that electric vehicles(EV's) have had the lowest and slowest price growth, out of all fuel types? Further proving that not only are EV's good for our planet, but also your pocket!
You can view our selection of EV's here!
Richard Walker also revealed observations that were made by age of vehicles sold. Throughout the year, cars that are less than a year old have risen in price by just a mere 19%, where as cars between 1 and 3 years old are now selling for 28.2% more! Surprisingly, though, cars that are between 3 and 5 years old are now selling for a staggering 31.1% more!
However, Walker stated that 'cost to change isn't as bad as you think', as in most cases, cars can be sold on for a lot more than the driver believes it is worth due to these ongoing price growths! He also added that affordability is currently less of an issue as many people saved a lot more money than usual last year due to COVID19 and the lockdowns.
Marc Thornborough, AutoTraders Partnership Director, even described cars as an 'appreciating asset', following on from Walker's comments about cost to change a car.
So, when asked if he thinks retail prices are about to drop, Richard Walker responded 'it doesn't look like it'.
He stated that 'continued strong pricing' should be expected, and that 'prices won't drop over night' as there is a strong demand for cars, but retailers have a short supply. However, Walker pointed out that, as previously discussed, affordability has changed and cars becoming 'appreciating assets' will assist in the purchase of any vehicle.
Seasonality was also a topic covered in this discussion, where from data patterns, AutoTrader revealed that there is usually a small price drop in vehicles over winter and the Christmas period, which is known as 'seasonal softening', however, this is also expected to be at it's highest compared to previous years.
According to data, Online adverts in 2021 are seeing a 2.6% rise compared to last year, and a 14.7% rise from the year before, revealed AutoTrader data analyst, Catherine King. Better yet, there has been a 39% rise in phone call enquiries, meaning Dealerships should be always be prepared to take a call!
AutoTrader's data and insight director, Richard Walker, reported on price performance whilst also factoring in age of vehicles and fuel type.
The data shown proves that diesel vehicle's have had the most consistent and highest price growth in 2021, however, within the past couple of months, petrol has began to overtake. Would it be surprising for you to hear that electric vehicles(EV's) have had the lowest and slowest price growth, out of all fuel types? Further proving that not only are EV's good for our planet, but also your pocket!
You can view our selection of EV's here!
Richard Walker also revealed observations that were made by age of vehicles sold. Throughout the year, cars that are less than a year old have risen in price by just a mere 19%, where as cars between 1 and 3 years old are now selling for 28.2% more! Surprisingly, though, cars that are between 3 and 5 years old are now selling for a staggering 31.1% more!
However, Walker stated that 'cost to change isn't as bad as you think', as in most cases, cars can be sold on for a lot more than the driver believes it is worth due to these ongoing price growths! He also added that affordability is currently less of an issue as many people saved a lot more money than usual last year due to COVID19 and the lockdowns.
Marc Thornborough, AutoTraders Partnership Director, even described cars as an 'appreciating asset', following on from Walker's comments about cost to change a car.
So, when asked if he thinks retail prices are about to drop, Richard Walker responded 'it doesn't look like it'.
He stated that 'continued strong pricing' should be expected, and that 'prices won't drop over night' as there is a strong demand for cars, but retailers have a short supply. However, Walker pointed out that, as previously discussed, affordability has changed and cars becoming 'appreciating assets' will assist in the purchase of any vehicle.
Seasonality was also a topic covered in this discussion, where from data patterns, AutoTrader revealed that there is usually a small price drop in vehicles over winter and the Christmas period, which is known as 'seasonal softening', however, this is also expected to be at it's highest compared to previous years.