The cost of used cars in the UK have soared as inflation also hits record highs.
The average price for a used car in the UK jumped 26.9% to almost £20,000, according to Auto Trader.
Auto Trader’s data and insights director Richard Walker commented: “To see such a huge increase in car prices in such a short period of time is truly remarkable and is indicative of the current perfect storm of exceptionally high levels of consumer demand coupled with very constrained new and used supply channels.”
“Although inflation will always pose a threat to demand, based on the positive consumer metrics we’re tracking across the retail market, as well as broader economic factors such as the record number of job vacancies reported just this week, we don’t anticipate any significant easing beyond normal seasonal trends.”
Commenting on the cost of transport and travel amid the new inflation figures, Laura Suter, head of personal finance at AJ Bell, said:
“Inflation has soared to a 10-year high and everyone is feeling the pinch, whether it’s in their weekly shop, their energy bills or when they’re heading out to buy a new car. But not everything has risen in price and some areas of our lives are getting pricier than others.
“The single biggest price rise of the year will dismay DIY fans or anyone working on a home renovation: MDF (or Medium-density fibreboard). The man-made wood has got 63% more expensive since the start of the year, as supply chain issues and a surge of people doing up their homes has put it in strong demand. And the biggest faller of the year? Computer games, which are a third cheaper than the start of the year, following a boom in demand during the pandemic that has died away now.”