Guide to Used Car Prices in 2022
Guide to Used Car Prices in 2022
Your Complete Guide to Used Car Prices in 2022
Used car prices at the start of 2022 went pretty crazy thanks to a perfect storm of negative factors including global supply chain issues, chip shortages, the global economy, and the effects of Brexit. As the number of new cars available in stock in the UK began to dwindle and lead times for factory builds were repeatedly extended, more and more people turned to used cars which gave the market an unprecedented boost.
However, as we enter Q3 (July to September) the market appears to have peaked and is expected to soften in the second half of the year, prompting relief from many potential used car buyers.
How do dealerships determine used car prices?
Dealerships use a wide range of internal and external market factors to price the cars they buy in order to sell them on the forecourt or for customers to buy online:
Book price and associated factors
You may have heard this term banded about when looking at used car prices. The ‘book price’ is the valuation price indicated by industry-standard guides, the ‘little black books’ of the automotive industry, such as Glass’ Guide. These guides offer valuations based on the vehicle's:
- Trim level and optional extras
These factors are the key elements a dealer will look at when making a call on what the screen price of the vehicle should be.
The book price is not set in stone and is merely an indicator to the dealership of where they should look to price the car before external factors are considered.
What did the car cost the dealership?
The price the dealer paid for the car is not the end of the story. When it comes to pricing up used cars a dealership has to make sure they make a profit or they’ll soon be out of business.
While a book price is a good indicator of car values if the dealer has to replace four tyres or respray a panel before they can sell it these costs need to be accounted for. While they may not directly influence the screen price, repairs and any other unexpected costs will affect the overall value of the sale.
How in demand is the vehicle?
Some cars, even older ones, can remain in high demand and command higher prices than you might expect even before they reach post-modern antique status. If a vehicle is in short supply or high demand, or both, the dealer price may well increase slightly because buyers will be willing to pay it.
How much is my current car worth?
Now you know the main factors which affect the value of a vehicle when you buy it, you may be interested in the part exchange or sale value of your own car.
If you are looking to sell or part exchange your current vehicle, get a free valuation on your used car from DCC
How can I make sure I pay a fair price when buying a used car?
You may have a certain make and model of car in mind for your next purchase but want to make sure you pay a fair price. Here are a few things you can do to help ensure you pay what the vehicle is worth:
Research – Search the car you are interested in online. Look for any common issues and read reviews from current and previous owners.
Compare – Search online to get an understanding of the range of dealership prices the car you are interested in goes for.
View the car – If you can get to the dealership book a test drive and get a good look at the car, Dealerships such as DCC offer in-person appointments, and also an online car buying service where you can view images of used cars in stock, and our representatives will carry out video walkarounds and appointments with you so you get a detailed look at the vehicle you are interested in.
Choose your dealership carefully –If a dealer is offering a lower than expected price, they want to move the car quickly. This could be for any one of a number of reasons but it does not build confidence in the vehicle. If the price is unexpectedly high and you can’t see why then ask. The dealer may be trying to recoup losses on that particular car, or it may be more in demand than you realised.
One way to ensure a fair price on your new used vehicle is to buy from a dealership with set prices. At DCC our vehicles are competitively priced, and we check the market every day to ensure we offer the best value within 100 miles of the dealership.
What will happen to used car prices in 2023?
We’ve already looked at used car prices and predictions for the rest of 2022, but what about moving into 2023?
There’s no crystal ball available to the automotive industry to predict what might happen between now and 2023, and though used car prices are slowing down in the second half of 2022, that doesn’t guarantee they will stay there. High fuel prices, availability of chips, and global volatility all play a part in new car production which impacts directly on the used car market.
Are you in the market for a used car?
If you are in the market for a used car aim to buy it when it suits your circumstances best. If that could be now, take a look at the DCC used car stocklist, updated daily with our latest arrivals, or get in touch today.