Car dealerships see soaring used car prices

Although the number of used cars sold by the business has fallen, they were still able to make almost £200m in revenue, up from almost 17% a year ago. Photo: Getty.

The average price of a used car has risen by more than a quarter, according to one of the UK’s biggest car dealers, Lookers (LOOK.L)

The Altrincham-based firm said used car prices rose 27% in the first half of 2022, compared to the same period a year earlier.

Although the number of used cars sold by the business has declined, they were still able to make nearly £200million in revenue, up nearly 17% from a year ago.

The company says thousands of customers have joined the waiting list to get a car. They also claim to have had 22,000 orders from individual customers at the end of June, compared to 9,000 in June 2021.

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Lookers’ new vehicle revenue, however, fell 5.6% to £970.2m. This is due to a decrease in the number of fleet vehicles that it leases to companies.

Chief Executive Mark Raban said: “Our financial performance in the first half was very strong, compared to an exceptional comparative period, despite continued inflationary pressure and disruption in vehicle supply.

“We also made excellent progress with our strategic priorities.

“We remain focused on our customers and are improving our proposition to ensure that the process of buying or renting a car is as easy and simple as possible, especially in the current difficult economic environment.”

Pre-tax profit was £49.9m in the first half, up from £50.4m the year before, when Lookers received £12.7m of government Covid-19 support. Overall revenue rose 3.6% to £2.2 billion.

The company said it would repay the £1.5m business rate relief it obtained during the pandemic.

Raban added: “While being mindful of the pressures facing consumers, we are confident in our strategic direction and maintain our expectations for the remainder of the year.”

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