Spread the love

PRICE growth for the UK’s most popular second-hand cars has slowed sharply, according to the latest AA Cars Used Car Index. 

Prices for the top 20 most searched-for cars on the AA Cars platform rose by just 0.2% in Q4 on an annual basis, compared to a 9.2% increase in the previous quarter.

The average price of the top 20 most searched-for cars on the AA Cars site was £16,358 in the final quarter of 2022, compared to £16,319 during the same three-month period in 2021.

The Ford Fiesta remains the most popular model, receiving the highest number of searches from prospective buyers in October, November and December. It was followed by the Ford Focus and Volkswagen Polo, which moved up from fourth place in Q3 to third in Q4. 

However the average price of a second-hand Fiesta fell by 2% on an annual basis, dropping to £11,095.

Despite the slowdown in price rises across the board, some models saw prices rise dramatically. Strong demand for small, fuel-efficient hatchbacks and city cars may be behind the 15% and 14%price rises seen by the Toyota Yaris and Fiat 500 respectively. 

Most searched-for cars in Q4 and their average price in Q4 2022 and 2021

Ranking

Make and model

Average price in Q4 2021

Average price in Q4 2022

Average price in Q3 2022

Growth rate Q4 2021 to 2022

Growth rate Q3 2022 to Q4 2022

1

Ford Fiesta

£11,377

£11,095

£10,851

-2%

2%

2

Ford Focus

£14,163

£12,816

£12,695

-10%

1%

3

Volkswagen Polo

£12,494

£12,755

£13,397

2%

-5%

4

Volkswagen Golf

£19,623

£19,875

£19,171

1%

4%

5

Nissan Qashqai

£16,445

£15,464

£14,606

-6%

6%

6

Vauxhall Corsa

£9,525

£9,753

£9,223

2%

6%

7

Fiat 500

£8,993

£10,240

£9,700

14%

6%

8

Audi A3

£18,814

£20,767

£19,179

10%

8%

9

Mercedes C Class

£23,469

£21,491

£21,424

-8%

0%

10

Toyota Yaris

£13,678

£15,722

£14,388

15%

9%

AA Cars data also shows that interest in EVs fell in Q4 compared to the same period in 2021. EVs accounted for 11.2% of all used car searches in Q4 2021, but this dropped to 4.8% in 2022. Overhalf (55.1%) of searches in Q4 were for petrol cars, rising from 46.6% in 2021. 23.5% of searches were for diesels, and 16.6% for hybrids.

One reason for drivers’ cooling interest in EVs could be the steady fall in fuel prices, which may be prompting some drivers to stick with petrol and diesel. The latest fuel price report from the AA shows petrol’s average pump price across the UK has fallen below 150p a litre for the first time in more than 10 and a half months. Diesel now averages 172.21p a litre.

Mark Oakley, Director of AA Cars, said: “For anyone considering buying a used car, this might be a good time to start looking. Prices are levelling off, or starting to fall, for many of the UK’s most popular used models. 

“However the pattern isn’t uniform, with small cars like the Toyota Yaris and Fiat 500 still seeing double-digit rates of annual price growth. Hatchbacks and city cars are particularly attractive in the current market thanks to their lower purchase prices compared to SUVs, and their superior fuel economy. 

“Buyers’ appetite for cars that are affordable to buy and cheap to run may also be behind the declining interest in EVs.

“There is an enormous range of petrol and diesel cars available on the second-hand market, but less so for EVs, even though they are appearing on forecourts at an ever-greater rate. The more limited supply of used EVs means their prices tend to hold up better, and so the lower upfront cost of petrol and diesel vehicles will be more attractive at the moment.”

However, advertised used car prices remained stable last year, according to the latest Market View by eBay Motors Group.

Prices started 2022 at £18,155 – the highest level ever tracked by Market View on the Motors.co.uk platform – and finished at £18,064, a drop of just 0.5% or £91. Although prices dipped from February to a low of £16,710 in July, they subsequently rallied, increasing for each of the last five months of the year.

The rises were mostly driven by cars aged up to two years which increased 10% from £29,803 in January to £32,899 in December, a rise £3,096. While price rises for older cars slowed down with 2-5 year olds up 3% and 5-10 year olds dipping 1%.

Concerns around affordability have prompted more buyers to consider older and cheaper cars as witnessed by significant rises in searches on Motors.co.uk.

Cars aged over six years accounted for just 41% of views in July 2019 but rose to nearly three-quarters (74%) of all views in December 2022.

Likewise, views for cars priced under £5,000 and those in the £5,000 to £10,000 bracket, jumped 20% over the last 18 months. While online views of cars priced £10,000-£20,000 dropped 19% in the same period.

Despite the impact of high prices and reduced consumer confidence, the time between cars being listed and sold remained stable in 2022. The average days to sell in December reduced across all dealer sectors year-on-year from 41 to 39 days, while stock levels rose from 53 to 59 units.

“Used cars are significantly more expensive than they were, with our data showing an average rise of £3,570 in the last 18 months,” said Phill Jones, Chief Operating Officer of eBay Motors Group.

“As a result, an affordability gap has emerged with younger profile cars now out of reach for many buyers, which has pushed more eyeballs to older and cheaper cars,” he said.

“However, we know from our consumer research that half of car buyers expect to pay more for their next car.1 This opens up opportunities for dealers to talk about total cost of ownership and monthly finance options, as well as promote the benefits of extended warranty cover to reduce the risk of costly repairs.

“More than ever customers need a helping hand to find the right car for their circumstances and that’s an opportunity for all dealers,” said Jones.

Got a spare 30 seconds?

 Help us to provide you with better market insight by completing a very short survey. It is anonymous and only takes 30 seconds. You will get free access to the quarterly results.

Thinking of the switch to electric?

Need help in finding the right electric vehicle for you? Compare driving range, battery capacity, charging time, price, and features to find the perfect EV for you.