Used car prices remained strong in 2022 despite the UK experiencing record levels of inflation and falling consumer confidence.
According to the latest Used Car Price Index for December 2022, the average asking price of a five-year-old car was up 0.17% on the previous month. It is the fourth consecutive month of growth, following an increase of 1.78% in October and 5.57% in November as the global semiconductor shortage continues to cause widespread disruption to the supply of new vehicles in the UK.
However, it's a different story for three-year-old cars. After October's average value rose 4.55% (the second biggest increase in values this year, after August’s 13.66% rise), December saw a fall of 0.61%, continuing the downward trend from November which saw a 2.17% reduction.
Used car values are not as high as they were in 2021 with the average asking price of a three-year-old car down 3.86% year-on-year and the average asking price of a five-year-old car down 3.82%.
Our Used Car Index takes a monthly look at the latest trends that are affecting the second-hand car market. From prices to long-term valuation trends, this is your one-stop-shop for the latest car price statistics, data and facts. Looking for general electric sales statistics?
(Source: heycar, SMMT)
High used car prices have been driven by a shortage of new vehicles. This has been created by a global shortage of semiconductors, used to power the infotainment systems, computers and digital displays that are found in the latest new cars.
Prior to the Covid-19 pandemic, car manufacturers sourced semiconductors from third-party suppliers. Many of these manufacturing plants closed as part of a global lockdown to halt the spread of Covid-19, resulting in a huge backlog of semiconductor orders and long waiting times for new cars.
New car delays have resulted in fewer used vehicles entering the market, as people on PCP finance and leasing agreements hold onto their cars for longer. This means there are not enough used cars in the market to meet demand, which has resulted in prices hitting record levels.
New car delays are beginning to ease as manufacturers tackle the semiconductor shortage by sourcing their own parts and building dedicated plants for the required components. However, it is difficult to predict when new car supply will return to some form of normality.
In light of that used car prices remain strong. The average asking price of a five-year-old car was up 0.17% in December 2022 compared to November. The average asking price of three-year-old car fell 0.61% but it is too early to tell if this is the start of a trend.
The value of your car will depend on its age, condition and spec. You can get an instant and free price with our Value My Car tool. It's easy to use; all you need to do is enter your car’s registration number to get an instant price.
You can also get a basic understanding of your car's value by looking at adverts for similar vehicles for sale. This will give you a rough idea of its lowest and highest price point, with the best condition cars commanding the highest prices.
Average price by brand for a three-year-old vehicle in November
Latest price data for petrol cars (based on a vehicle that's three years old)
Latest price data for diesel cars (based on a vehicle that's three years old)
Average values for a three-year-old vehicle by mileage in November
Latest average values for SUVs, saloons and hatchbacks (based on a three-year-old vehicle)
Everything you need to know about buying and owning a car