Used car values are stabilising after two years of rapid price increases

Responding to SMMT used car sales data for Q1 2023, which showed 4.1% growth:

Chris Knight, UK Automotive Partner for KPMG, said:

"Used car values are stabilising after around two years of rapid price increases that were fuelled by demand far-outweighing supply during the pandemic years. 

"Whilst supply of new stock into the market is gradually increasing, demand continues to be ahead of supply for some brands and models.  The likes of ULEZ expansion in London is also playing a demand role. 

"Increased household essential bills and higher borrowing costs will also be key factors behind some consumers deciding to purchase a used car, rather than new.

"Used car prices remain elevated compared to pre-pandemic but used electric vehicle prices are falling as more stock enters the market. This is creating more options for those wanting to make the switch to an EV."

Media contact:

Steven Reilly-Hii, Media Relations Manager, KPMG LLP, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.

About KPMG UK:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

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