1 in 4 ‘nearly new’ cars now worth more than brand new versions as used prices rocket

Average used car prices soared by almost a third in December 2021 compared with the previous year as consumer demand continued to drive up values.

The end of 2021 saw the 21st month of consecutive price growth in the second-hand market, with average costs 30% higher than at the end of 2020.

The latest figures from the Auto Trader Retail Price Index showed the continued strength of the used car market and revealed that a quarter of “nearly new” cars - those less than 12 months old - were selling for more than more than the list price of an equivalent brand new model.

This is in part down to semiconductor supply issues which have affected production around the world and had a significant impact on the new car market. A lack of the key electronic parts has led to waiting times of up to a year on some new cars, pushing buyers to seek out nearly new alternatives.