The values of  the nation’s used vehicles may never return to their pre-pandemic levels, according to Cox Automotive…

Used Vehicle Values Permanently Raised? 

Cox Automotive believes that, as a consequence of the coronavirus pandemic, the online marketplace for used vehicles has accelerated. As a result, a new benchmark may have been reached – meaning values may never return to their pre-pandemic levels. 

The semiconductor shortage has played a role, too. Roughly 1.4 million new vehicles won’t be reaching the used market.  Cox’s own market tracker keeps track of wholesale values. Its latest results, covering November 2021, put the current situation into perspective. There’s been a record 16.8% month-on-month increase in average sale price; making it one of the largest rises ever and raising the total by a considerable £1,129, to £8,553. The year-on-year average has also increased by a hefty 33.8%. 

A ‘Complex’ Situation 

Philip Nothard, insight and strategy director at Cox Automotive, commented on the situation. He explained, “while prices have now increased for eight consecutive months, recent signs point towards a potential softening in the market. And while it remains the case that prices overall have continued to rise, the situation is becoming increasingly complex; with some models starting to see significant price decreases. Moreover, some figures we’ve observed are misleading, as it doesn’t represent live market data where many models that saw an increase at the start of the month, which dropped off by the end”.

He continued, “it’s important to remember in the final month of the year that this is traditionally a slow period as retail activity slows ahead of Christmas. Prices are expected to drop in line with usual market cycles, so current prices still reflect a high demand with a low supply market. With prices as they are, dealers are becoming increasingly cautious, but as the year draws to a close, they will require stock for the new year, so prices are unlikely to drop significantly”. 

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