MOTORIST are borrowing 5% less for used car purchases this year as the cost-of-living crisis bites – with only four of the 20 most popular vehicles now available to the average loan customer, reveals new data and analysis from AA Car Finance.
The average amount financed per used car from January to August 2022 was £13,239 – enough to buy a second-hand Vauxhall Astra, Vauxhall Corsa, Fiat 500, Ford Fiesta, Vauxhall Mokka, Nissan Juke or Ford Focus.
However, the average loan fell to £12,532 in the same period this year, putting a Mokka, Juke and Focus out of reach when price rises are included.
Table: Loans requested and granted
|
Applications Jan-Aug 2022 |
Applications Jan-Aug 2023 |
|||
|
Average value |
Average term (months) |
Average value |
Average term (months) |
|
| Loans requested |
£14,184 |
58.3 |
£13,865 |
56.9 |
| Loans approved |
£13,239 |
57.1 |
£12,532 |
54.5 |
While the average loan term has fallen, average monthly repayments have barely changed, falling only slightly from £232 a month in 2022 to £230 in 2023.
Table: Changing price of most popular 20 used cars
|
Rank |
Make and model |
Average price a year ago (Q3 2022) |
Average price this quarter (Q3 2023) |
Annual price change (Q3 2022 to Q3 2023) |
|
1 |
Vauxhall Astra |
£8,694 |
£8,889 |
2.2% |
|
2 |
Fiat 500 |
£9,700 |
£9,711 |
0.1% |
|
3 |
Vauxhall Corsa |
£9,223 |
£9,926 |
7.6% |
|
4 |
Ford Fiesta |
£10,851 |
£11,148 |
2.7% |
|
5 |
Ford Focus |
£12,695 |
£12,745 |
0.4% |
|
6 |
Volkswagen Polo |
£13,397 |
£13,035 |
-2.7% |
|
7 |
Vauxhall Mokka |
£12,154 |
£13,481 |
10.9% |
|
8 |
Nissan Juke |
£12,546 |
£13,646 |
8.8% |
|
9 |
Nissan Qashqai |
£14,606 |
£15,493 |
6.1% |
|
10 |
Toyota Yaris |
£14,388 |
£15,709 |
9.2% |
|
11 |
Audi A1 |
£16,100 |
£15,849 |
-1.6% |
|
12 |
Ford Kuga |
£17,308 |
£18,342 |
6.0% |
|
13 |
Volkswagen Golf |
£19,171 |
£18,970 |
-1.0% |
|
14 |
Mercedes C Class |
£21,424 |
£19,225 |
-10.3% |
|
15 |
Kia Sportage |
£16,913 |
£19,267 |
13.9% |
|
16 |
Mercedes A Class |
£20,817 |
£19,693 |
-5.4% |
|
17 |
Audi A3 |
£19,179 |
£19,927 |
3.9% |
|
18 |
Ford Transit |
£20,418 |
£21,987 |
7.7% |
|
19 |
Volkswagen Tiguan |
£23,876 |
£23,373 |
-2.1% |
|
20 |
Volvo XC40 |
£30,187 |
£34,298 |
13.6% |
Source: AA Finance
AA Car Finance is urging drivers to shop around when looking for a used car, and to consider extending the loan term if needed.
Mark Atwell, Director at AA Car Finance, said: “The cost-of-living crisis has hit motorists hard, and many finance companies have made it tougher to get loans to protect themselves. For many drivers, popular used cars like the Ford Focus at their average cost can be out of reach without a significant deposit.
“Remember that you can often make big savings by shopping around for used cars, and you may be able to find the same make and model for a much lower price online. Extending the term of a loan is a good way to keep your monthly repayments at the same level, while giving you more purchasing power.”
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