You would think that prices would be coming down for most things. But before you reach for the smelling salts, this doesn’t include cars.
On Monday, the Press Association reported that, for the second month in a row, wholesale used car prices rose. This indicates that the price of used cars is likely to go up.
Basically, it means that used car prices are rising.
This summer, one of the biggest challenges businesses face is raising their prices to hold on to their customers amid rising inflation. While wholesale prices are still falling, this means that even though you’re getting more for your money, there’s less to spend.
It’s likely that more customers will have to choose to travel further, or spend more on other things.
The issue is likely to be particularly acute for many shops in May. That’s when Britain’s new inflation index will show inflation is above the 2.0% level at which the Bank of England is comfortable with rising prices.
The Bank of England will react by raising interest rates. So, anyone thinking of selling their car this summer will need to know that the price might go up.