Used car prices accelerate

Demand for some models is so strong in the UK that they are even appreciating with age

'Price growth in the used car market is so strong that some in-demand models are appreciating even as they sit on the driveway,' said AA Cars.

Some models of used cars in the UK have increased in value due to a surge in demand and short supply.

Analysis carried out by AA Cars found second-hand prices of Britain’s most popular cars have risen by up to 57% in two years.

Demand for some models is so strong that they are even appreciating with age. They provided the example of a five-year-old Mini Hatch currently costing 15% more than a three-year-old model did in 2019.

The most popular searched-for car, the Ford Fiesta, saw three- to five-year-old models jump by nearly a third (31%) between 2019 and 2021.

James Fairclough, CEO of AA Cars, said that with the exception of houses and some classic cars, things rarely go up in value as they age.

'Appreciating on the driveway'

“Yet price growth in the used car market is so strong that some in-demand models are appreciating even as they sit on the driveway."

The surge in used-car prices comes as sales of new cars have plummeted across Europe.

New car registrations have fallen by 25% to 972,723, the lowest for the month since 1995, the European Automobile Manufacturers’ Association said. 

The lobby group largely attributes the drop to the semiconductor shortage, which worsened when Covid-19 outbreaks idled chip packaging and testing facilities in Southeast Asia.