In April, the average price of a used car was £17,843. This represents a 1.5% rise on March levels and the largest monthly increase since November 2021.

While used car prices have grown on a year-on-year (YoY) basis for 37 consecutive months, the rate of growth has gradually lessened since April 2022 which saw a peak of 32.2% YoY.

March saw a reversal of this trend, however, rising from the 1.3% YoY recorded in February, to 2%. This upward trend continued into April, with average prices rising 2.7% YoY.

This acceleration in price growth is considered to be the result of the ongoing challenges in used car supply (down -8.9% YoY in April) following the huge shortfall in new car production during the global pandemic. A second factor has been the recent intensification of demand (up 8.3% YoY). This disparity is helping to keep second-hand car prices steady and supporting a vibrant and profitable used car market with experts observing no indication of significant reduction in demand at any point in the near future.