Rising New Car Prices Drive Motorists Towards Used Car Market

Used car market trends at a Skoda dealership.

The Shift to Used Cars Amid Rising Prices

As inflation in new car prices continues to rise, many motorists are finding solace in the used car market. According to Gaurav Jain from Carwow, consumer confidence appears to be waning, compelling buyers to turn to previously owned vehicles for a better deal. The report from the Society of Motor Manufacturers reveals significant figures that highlight this shift.

Over the past five years, the average recommended retail price (RRP) of new cars has surged by 35%, which means that drivers are now seeing more options in the used car arena at prices they can realistically afford. In 2024, one in four cars configured on Carwow had a staggering RRP of over £40,000. This shift underlines a pressing need for better value among consumers.

Growing Demand for Used Electric Vehicles

One of the standout trends in the used car market is the booming interest in electric vehicles (EVs). James Wilson, COO of Motorway, noted a 66% year-on-year increase in the sales volumes of used hybrids and EVs. As more second-hand options become available and prices adjust to meet consumer needs, electric vehicles are transitioning from a niche to a mainstream choice for cost-conscious buyers.

Future Predictions for Used Car Sales

Looking ahead, Ian Plummer of Auto Trader predicts that the growth momentum in the used car market will continue despite potential economic headwinds. The robust demand observed in the first quarter suggests a strong trajectory, with projections indicating sales could exceed earlier estimates of 7.7 million this year.

What This Means for Motorists

The current consumer landscape suggests that shoppers are not only looking for affordability but also the sustainability offered by used electric options. This shift signifies a broader trend towards environmentally responsible driving without breaking the bank.

Given these insights, if you're in the market for a vehicle, exploring the used car sector, especially in the realm of EVs, could be a smart move. The evolving landscape of vehicle options presents an opportunity to make choices that are both economically and environmentally sound.

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