Rising Used Car Prices Affecting Cost Of Living    

Andy Alderson, Vanarama CEO & founder, has said that used car prices are rising faster than the cost of living and the company has compared the latest UK consumer costs stats, from the Office for National Statistics and Auto Trader, to gauge how closely related the current demand and costs are to the overall cost of living.

Alderson believes smart shopping could still produce a great deal: “Generally, the UK cost of living increases year on year, but used car prices are rising quicker still – up 24% in the last five years. Thanks to heightened demand and global supply issues, that’s likely to stretch into 2022.”

With costs increasing, from the usual petrol and diesel prices to even clothing, Vanarama looked at the figures and how they’ve changed since 2017, concluding that only three costs have seen a bigger increase than used cars, which are now almost 25% more expensive than they were five years ago, according to data from Auto Trader.

It reports that even alcohol and tobacco, both subject to ever-rising taxes, show a much steadier increase of only 4%. That is largely fuelled by Covid-19 and the lockdowns that meant UK cars were driven less than usual – resulting in lower mileages and therefore higher asking prices. The microchip shortage has also played a part. The report concludes that looking at the average UK salary alongside the average used car price over the past five years, buying used is taking more and more of the buyer’s disposable income. In 2017, when the typical salary was under £29k and used cars under £10k, a used vehicle took only 41.5% of the average person’s wage.