Figures from
With a lack of good one-to-three-year-old used cars in the market - caused by extraordinarily low new car sales in 2020, 2021 and 2022, prices will remain strong and there's unlikely to be any dramatic falls - or bargains for consumers.”
This trend is due to an ongoing global microchip shortage which has hampered the availability of new cars. This means buyers have turned to used cars in their droves, which has ratcheted up the price.
Covid, supply-chain issues, a global semiconductor shortage and changes in consumer behaviour have all combined to create record high prices in the car industry, with the soaring cost of new cars trickling down to affect used car prices in Australia, too.
Currently, the cheapest place in England to buy a used car is Nottingham, where the price can be up to 35% lower than the rest of the country. After Nottingham, Hull and Birmingham also tend to have significantly lower prices than the national average.
Since the Covid pandemic used prices have soared - up as much as 32% between 2021 and 2022, according to some sellers - but the latest quarterly data from AA Cars shows a minor 0.3% change in 2023 compared with 2022 for the 20 most popular models.
New SMMT figures show increased sales of second-hand cars, but prices look set to stay high for a while. Used car sales grew by just over 4 per cent in the first three months of 2023, following three consecutive quarters of falling sales, but there's little sign yet of high prices easing as more cars change hands.
Used car prices could 'rise 5-10% in 2023'
'Three years on from the pandemic there's far fewer lease returns coming back into the market, restricting supply, while the significant rises in new car prices leave significant headroom for used prices to follow suit.
Used car sales in the UK fell by 8.5% in 2022, with 6,890,777 second-hand vehicles changing hands, despite a previous few years of growth because of the chip shortage. Meanwhile, sales of new cars in 2022 slumped to the lowest rate in three decades. So does that mean now is a good time to buy a car?
There is a huge market for used LHD cars, and the U.K. And Ireland are simply not a part of it. As a result, there are many used RHD cars on the market and not enough buyers. That drives prices down. Why are used cars over 10 years old in the US much more expensive than the UK?
Auto Trader's Retail Price Index found that the average retail value of a used car grew by 1.3 per cent year-on-year in February to reach £17,654. The figure is down on the 32 per cent growth seen in February 2022 but continues to highlight the strong values used cars currently hold.
In 2021, the average used car price increased 30%, with some models going up 70%. There have even been instances of used cars being more expensive than their new equivalents. In late 2021, a one-year-old Dacia Sandero was selling for about £2,000 more than the circa-£9,500 price of a new model, for example.
Cox Automotive has revised its UK new car market forecast to predict that 2023 will achieve a 13.5% uplift on last year.
The cheapest months to buy a car from the car dealerships specifically would be September and March. This is often the best time for used cars as many new plates tend to be introduced at this point.
The absolute best age to purchase a second-hand car is when it is between two and three years old. Two-year old cars have a full year left before they will need their first MOT, and are almost guaranteed to be in nearly-new condition, while three year old cars often sail through that first MOT without any issues.
On average, a car should have around 10,000 miles per year. So, for an easy way to calculate how many miles on a used car is too much, just multiply its age by 10,000. For example, a five-year-old car would ideally have 50,000 miles or less on its odometer.
Cover for LHD cars can be more expensive compared to RHD vehicles. Fundamentally, this is because cars made for the UK market are all right-hand drive. If you've got (or are thinking of getting) a left-hand drive car, it's highly likely to be imported.
Average Car Mileage per Year
Experts agree that the common rule of thumb on mileage for a used vehicle is roughly 12,000 miles added each year of ownership. That means if you are looking at a 5-year-old vehicle, it should have about 60,000 miles on it.
But other factors should be considered, such as whether you decide to travel to Northern Ireland or Great Britain. Although used car prices in the North are very competitive when compared with the Republic, there are even lower prices available in Britain, as there is a larger supply and wider range of vehicles there.
High supply: The UK has a huge supply of used cars in comparison to many other European countries. The UK is one of the biggest market places for brand new cars in Europe, and this means that there are a lot of used cars available for sale. This high supply may contribute to lower prices.
Considering how much new and used car prices are rising at the moment you might be surprised to find out a recent UK study has found Australia is the most affordable country to own a car.
Unlike Japanese or American cars, however, German models are designed with European-style roads in mind, which is more ideal for UK drivers who are often navigating tight, winding roadways (when they're not queued in traffic).
The cost of living in Ireland can be slightly higher than that of the UK, largely due to taxes, rents, and goods being more expensive.