Used car prices record 5 years’ growth in just 6 months

Used car prices in the UK have soared by an average of more than £3,000 since May, seeing five years’ worth of growth in just six months.

New pricing data from online marketplace Auto Trader shows that November marked the 20th consecutive month of price rises across the used car market, with everything from luxury sports cars to people carriers enjoying up to 50% increases in average values.

The latest data shows that the average used car price on the platform is now £17,366. That is £3,400 more than in May 2021. Based on the price trajectory between 2017 and May 2021, used car values were not expected to reach that level until 2026.

An Auto Trader spokesperson said the reasons for the continued strength of the used market were simple: “Although the level of price growth is exceptional, it’s being fuelled by simple economics – very high levels of demand, coupled with low levels of supply. The increased consumer demand is highlighted in the recent surge in traffic to Auto Trader; there were 56.9 million visits in November, which is a 23% increase on November 2019.”

According to Auto Trader’s analysis, supply is down 9% compared with November 2019, making competition for cars more fierce.

The figures also reveal that a quarter of nearly new models - those up to 12 months old - are selling for more than their original list price as buyers struggle to find available brand-new stock.