Demand cools for used cars

New data from the AA Used Car Index has revealed that price growth for the most popular second-hand models has slowed sharply

It found that prices for the top 20 most searched-for cars on the AA Cars platform rose by just 0.2% in the last quarter of 2022, compared to a 9.2% increase in the previous quarter.

As such, the average price of the most popular 20 models was £16,358 in the final quarter of 2022. This compares to £16,319 during the same three-month period in 2021.

AA Cars data also showed that interest in electric vehicles has cooled, accounting for 4.8% of all used car searches in the last quarter of 2022 compared to 11.2% the previous year.

Mark Oakley, director, 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 still seeing double-digit rates of annual price growth. Buyers’ appetite for cars that are affordable to buy and cheap to run may also be behind the declining interest in EVs.”