'Great news for buyers' says AA boss as used car asking prices drop nine per cent

The analysis, based on pricing of the most frequently searched for used cars on the AA Cars platform, marks the second consecutive decrease in prices, following a 3.3 per cent dip recorded in the fourth quarter of 2023.

The average price of the most popular second-hand cars was £17,250 during January, February and March, down from £18,957 a year ago.

However, compared with the previous quarter — October, November and December — average prices have seen a slight increase of 0.8 per cent, rising from £17,120.

None of the top 20 used cars listed on the AA Cars site saw a price increase over the past year. The Volkswagen Golf saw the most significant drop, with its average price now at £17,558, falling by nearly a fifth (17 per cent) from £20,044 a year ago.

There was a 9.2 per cent drop in asking price for the Nissan Qashqai, the most sought after used car. Its average asking price dropped from £16,599 to £15,077.

Meanwhile, among the top 20 ranking, five vehicles including the Audi A4, Audi Q5, Kia Sportage, and Audi A3 saw price hikes compared to the last quarter of 2023.

The Audi A4 had the most significant increase, with its average price rising by 9 per cent within three months, from £19,066 to £20,818.

Prices for the top 20 most sought-after used EVs and hybrids saw a decline of 12 per cent. During the first quarter, the average price of the most in-demand EV and hybrid models available for sale on AA Cars stood at £19,548, a decrease from £22,158 in the same period in 2023.

The hybrid Toyota Yaris stands out as the most favoured electric or hybrid vehicle on the AA Cars platform. Its price saw a slight decline in the first quarter of 2024 compared to the same period in 2023, dropping by a modest 4.1 per cent. Meanwhile, prices for other electric and hybrid models experienced more significant decreases, due to a continued influx of used EVs and hybrids to the market, offering a wider variety of makes and models for buyers.

James Hosking, Director of AA Cars, said: “The ongoing drop in used car prices is great news for budget-savvy buyers eager to hit the road or upgrade their motor.

“Although overall prices are dropping on an annual basis, there has been a slight rise in prices for certain models compared with the previous quarter, which may reflect increasing demand for particular cars.

“Regardless of when you choose to upgrade your car, it’s always wise to explore your options and work out the typical selling price of the model you're eyeing up — but remember that mileage and age will play a factor.

“The growing availability of used EVs and hybrids is also helping lower prices for buyers who are after cheaper models — highlighted by the 12 per cent drop in prices in the space of a year. Although they do require a higher upfront cost than traditional cars, this downward trend in used EV and hybrid prices is likely to continue as more make their way onto the market.

“But whatever used car you’re after, scheduling an independent vehicle inspection before you purchase will offer peace of mind and help to avoid potential costly repairs in the future."