INVESTIGATION
WHAT WILL HAPPEN TO USED CAR PRICES IN 2022?
• 2021 WAS A CRAZY YEAR FOR USED CAR PRICES AND DEMAND, BUT WILL THIS CONTINUE? • IS NEW CAR SUPPLY LIKELY TO IMPROVE IN 2022, AND HOW WILL THIS AFFECT THE USED SECTOR? • SEVEN EXPERTS ACROSS THE MOTOR TRADE REVEAL THEIR PREDICTIONS FOR THE USED CAR MARKET EXCLUSIVELY TO CAR DEALER by James Batchelor @JRRBatchelor
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ith a year of record price increases and crazy used car values now in the rearview mirror, the question on most dealers’ lips is what’s going to happen to used car prices in 2022? While the next 12 months are unlikely to be as groundbreaking as 2021 was, experts have told Car Dealer that 2022 will still be a strong year for secondhand motors, with fluctuating prices and high demand from consumers. The semiconductors shortage and motorists proving to be stubborn when it comes to swapping their car keys for public transport are two big factors – the former, some say, will only show signs of improvement this summer, but more likely in 2023. In December 2021, Cap HPI and Auto Trader told Car Dealer that a softening of prices in November and December was purely traditional seasonal behaviour. Cap HPI’s Derren Martin, for instance, said this slight dip in values was sharply set against a market that had seen rises of more than 27 per cent since the beginning of January 2021. But will this dip continue on a downward direction or will prices pick up? Is there a price crash on the horizon and will 2022 be a successful one for the motor trade? We asked seven experts for their views – here’s what they had to say… 06 | CarDealerMag.co.uk
Dealers are enjoying strong demand, but they are also less likely to offer discounts, because demand looks likely to outstrip supply of vehicles for some time. Philip Nothard
