Used car prices: ‘drivers will pay more for older cars’ as 15m more older vehicles set to stay on the road

Used car buyers have been told to get used to paying higher prices for older cars as more ageing vehicles are kept on the road.

An extra 3.6 million 10-year-old cars are set to be on the UK’s roads by 2027 as problems in the new car trade have long-term effects on the secondhand market. That’s according to online marketplace Auto Trader, which predicts that a record 15.4m cars aged 10 years or older will still be in use in five year’s time.

The classified advert specialist warned that problems caused by semiconductor shortages means two million new cars are “missing” compared to pre-pandemic trends. It said this would have a lingering effect on the used car market, as the shortage trickles down and pushes up prices for years to come.

Used car prices have risen sharply since the start of the pandemic and Auto Trader director Ian Plummer said that the shortage of new stock on the secondhand market along with continued strong demand would keep prices high and keep older vehicles on the road for longer.

Prices up by more than £2,000

According to Auto Trader’s data, stock shortages have pushed up the average cost of a 10-year-old car in the UK by more than £2,000 since before the pandemic. Its figures show that the average asking price for a ten-year-old car hit £6,176 in September, up 53% on three years ago. At the same time, it has seen a 22% increase in searches for cars over 10 years old compared with pre-pandemic times, possibly as drivers seek out cheaper options amid the cost of living crisis. The most searched for older models on the platform include the BMW 3 Series, Volkswagen Golf, Ford Fiesta and Vauxhall Corsa.

Based on DVLA data, Auto Trader estimates that the number of decade-old cars is set to rise from 7.2m in 2021 to 9.2m by 2027, while the number of cars more than 15 years old is also predicted to jump by a third compared to 6.2m.

Mr Plummer said: “The aftermath of Covid means that around 40% of cars on the road will be more than 10 years old in the next five years. The sheer shortage of cars, combined with the practical necessity for drivers to stay on the road, is pushing prices higher. As long as those market dynamics remain in place, drivers will have to get used to paying more for older cars.”

Retailer Halfords expressed concerns over the implications of older cars remaining in use. Its chief executive Graham Stapleton said: “Vehicle reliability has improved in recent years but there is no getting away from the fact that older cars are more likely to develop faults, are more costly to maintain and are more polluting.

“This represents a risk to road safety, yet another squeeze on motorists’ wallets and a threat to the UK’s emissions reduction goals. With an ageing car fleet, it’s more important than ever that people keep their cars properly maintained, serviced and up to date with their MOT.”