The values in the used car market have risen by up to 57% in the last two years, according to the latest data from AA Cars.
In some cases, the demand has been so strong that the price has appreciated with age. For example, a three year-old Mini Hatch now costs 57% more than a model of the same age cost in 2019. In comparison, a five year-old model currently costs 15% more than a three year-old car did in 2019, meaning it has gained in value despite getting two years older.
The analysis, of the 30 most searched for cars on the AA Cars platform, compared prices of three, four and five year-old models in August 2019 and August 2021.
The most popular car, the Ford Fiesta, saw the average of three to five year-old models jump by nearly a third (31%) to £9,770 between 2019 and 2021.
James Fairclough, chief executive of AA Cars, said: “With the exception of houses and some classic cars, things rarely go up in value as they age.
“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. But even though average prices have risen sharply over the past two years, it is still possible to get a good deal on the second-hand market.
“We advise anyone who is in the market for a used car to shop around widely and, when they have narrowed their search, to ask the dealer questions about the specific vehicle they are interested in.
“We always recommend that an independent pre-sale vehicle inspection takes place on any second-hand car before any money changes hands, to ensure drivers can have peace of mind that there are no hidden faults which will cost them money down the line.”
|Popularity ranking||Car||Price rise 2019-2021||Average 2019 price||Average 2021 price|
|9||Mercedes A Class||27.71%||£13,566||£17,325|
Fairclough recently spoke to Motor Finance about the profound changes we’ve seen in consumer behaviour as a result of the pandemic.