Used Car Prices Surge

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【Summary】Strong demand for used cars has led to some models increasing in value as they age, according to a survey by AA Cars. The analysis found that seven of the UK's most popular used cars have seen their prices rise over the past two years. The Toyota Aygo topped the list, with five-year-old versions worth 15.7% more than three-year-old versions in 2021. The Vauxhall Corsa came in second, with a price increase of 11.9% for five-year-old models in 2023 compared to three-year-old models in 2021.

FutureCar Staff Nov 08, 2023 5:16 AM PT

According to a new survey, some used cars are defying expectations and actually increasing in value as they age. AA Cars conducted an analysis of the average prices of three- and five-year-old models in Q3 2021 compared to the same period this year. Surprisingly, the values of certain vehicles have risen even though they are two years older.

Out of the UK's most popular used cars, seven have seen their prices rise over the past two years. Topping the list is the Toyota Aygo, with five-year-old models worth 15.7% more than their three-year-old counterparts in 2021. A three-year-old Aygo purchased in Q3 2021 had an average value of £8,331, while the same car at five years old is worth £9,636 this year.

The second car on the list is the Vauxhall Corsa. In 2021, a three-year-old Corsa had a price of £8,754, but a five-year-old version in 2023 is valued at £9,791, representing an 11.9% increase.

Interestingly, the Ford Fiesta, a popular car in both the new and used car sectors, ranked sixth in the survey. Further analysis by AA Cars revealed that the prices of the most searched-for cars on their site remain 3.4% higher than last year. However, the average prices of the UK's most popular used cars fell by 1.4% between Q2 and Q3 of this year.

Mark Oakley, director of AA Cars, commented on this phenomenon, stating that it is rare for cars to increase in value as they age, except for some classic vehicles. He attributed this trend to persistent supply shortages, which have led to an appreciation of the most in-demand models, including the Ford Fiesta and the Fiat 500. Oakley also mentioned that used cars less than three years old, often bought on finance and with just one owner, are typically in good condition and offer great value for money.

Despite the overall softening of used car prices, Auto Trader reports that demand for second-hand cars remains strong.

The following is a list of used cars that have seen the most significant increase in value despite being older: