Price – second hand cars will likely cost a lot less than the brand-new version. Less depreciation – older cars tend to depreciate more gradually than a new car, so they hold their value better. It's ready to go – once all the paperwork's done, and your tax and insurance are sorted, you can drive it away.
Whilst used car valuations are falling (used prices fell by 2% in August 2023) there are no signs of an impending 'price crash'. This has led to many people pondering the question, “When will car prices drop?” In this guide, we will analyse the current market trends for car prices.
For those looking to buy used cars, the market is expecting to see a 10-20% drop in prices which makes 2023 the perfect year to buy a used car in impeccable condition. Below, we have highlighted the biggest opportunities 2023 will bring for you to purchase your car.
Will my money go further with a used car? The list price of a used or second-hand car will be cheaper than a brand-new car. And, in some instances, a used car might only be a year or 2 old or not have that many miles on the clock – so there can be some great deals to be had. You also need to factor in car depreciation.
It's not just the cost of the car itself you can haggle on, but also the price of your existing car if you're looking to part exchange. There's often more scope for negotiation when it comes to this, too, because dealers can often be more fixed on the selling price than the buying price.
There is no average discount on a used car - it depends on the car dealership, the model you're wanting to purchase and the car's history - among other variables. While we can't determine an average discount on a used price, negotiating the price of your next used car is well worth it.
New SMMT figures show increased sales of second-hand cars, but prices look set to stay high for a while. Used car sales grew by just over 4 per cent in the first three months of 2023, following three consecutive quarters of falling sales, but there's little sign yet of high prices easing as more cars change hands.
'We're unlikely to see a repeat of the big price rises recorded over the past two years,' said Oakley. AA data shows the average price of the most popular used cars in the UK fell nearly two per cent in the first and second quarters of 2023. He expects those falls to continue.
You want to save on the upfront cost of a car. You're looking for the most car for the money. You don't want to wait for the delivery of a new car. You're happy to offset the lower price with potentially higher maintenance costs.
Car insurance is tailored to you, your car and where you live. In general, the newer the car, the better its safety and security. That could mean a new car is cheaper to insure than a second-hand one. But equally it may cost an insurance provider more to replace a new car than an old one.
The cheapest and most simple way to buy a car is to fund all or part of it in cash. If you're able to pay the whole price in cash, you'll own the car outright.
Your best bet is to buy between October and January 1st. December is particularly ripe for deals, discounts, rebates and other incentives as well. This is because car salespeople are aggressively working to meet their monthly, quarterly and yearly quotas.
October through December is a good time to buy a used car. These months coincide with the peak new-car buying season at the dealership, which means more trade-ins are entering the used car inventory.
As much as we'd love to be wrong, it's very likely that both new and used car prices will remain high in 2024. CarEdge co-founder Ray Shefska recently shared his thoughts on the most likely scenarios in the short-term. All things considered, Ray says that continued high prices are all but guaranteed.
In the UK, demand for second-hand cars is high due to economic pressures and supply chain disruptions. With few new cars available, used car prices have increased as buyers rush to meet their needs.
The average value of a used car at three years, 60,000 miles, fell by 4.2% in October. However, average values remain around 15% above where they were at the start of 2021 for petrol and diesel vehicles, while electric vehicles (EVs), on average, are around 20% lower.
In retaining “like new” quality and inheriting a slower depreciation rate, the best used car age for buying is 2-3 years. In fact, Americans are saving up to $14,000 on a 3-year-old vehicle. For example, a car that may have cost you $30,000 when new would cost around $16,000 after just 3 years.
In reality, there is no concrete answer for this – it all depends on the car. A well-maintained 10-year-old car could possibly be a better investment than a newer model which hasn't been looked after. As a very general rule of thumb, a car is usually reliable up to 5 years providing it has been maintained.
What is the oldest second-hand car you should buy?
For reliability, you probably want to avoid anything that is too old as age will decrease a vehicle's overall reliability. Mileage will also play an important role in determining a vehicle's reliability. For vehicles with more than 150,000 miles on the odometer, try to find something newer than the late '90s.
What is the cheapest city to buy a car? Currently, the cheapest place in England to buy a used car is Nottingham, where the price can be up to 35% lower than the rest of the country. After Nottingham, Hull and Birmingham also tend to have significantly lower prices than the national average.
One example given by the firm took the Volkswagen Golf and looked at prices of cars aged between 2018 and 2022. In Hull, the average price was £18,639 whereas in London the same model was listed for an average price of £22,511. Cargurus says used car buyers could therefore save around £3,800 buying in cheaper cities.
During the pandemic, used cars got incredibly expensive for a couple of reasons. Mainly, supply chain issues kept car companies from making and selling as many cars as usual, driving up prices for new vehicles and forcing buyers to the used market in droves. Hot demand and limited supply pushed prices sky-high.
“We anticipate demand increasing in January and February, which will give the remarketing sector a strong start to the year,” he added. And such increased demand for used cars in early 2024 will break the cycle of gently falling prices that the market has seen for the past 18 months.
Initiate bargaining by asking something like, "Is that your best price?" Take a polite, positive approach. Body language and facial expressions play a big part. Look interested, but not so eager they'll feel confident you'll buy regardless. Smile and be friendly, but be prepared to walk away if necessary.
We offer a transparent and haggle-free experience so there's no need to negotiate. Every Cazoo car is thoroughly assessed in terms of its individual features, specification and condition before we set the price. We also monitor and compare our prices against the market on a daily basis to make sure we're competitive.
