Buying a used car costs almost 50 per cent of a Brit’s average salary, according to car leasing company Vanarama.
Since 2017, the average price of a second-hand vehicle has gone up from representing 41.5 per cent of the average UK salary to amounting to 47.2 per cent, around £14,775.
“Generally, the UK cost of living increases year on year, but used car prices are rising quicker still – up 24 per cent in the last five years,” said Vanarama’s chief executive Andy Alderson. “Thanks to heightened demand and global supply issues, that’s likely to stretch into 2022.”
Data from Auto Trader have revealed that used car prices have gone up 28.6 per cent on a year-on-year basis, marking November as the 20th consecutive month of growth.
As a result of the hike in inflation rates, prices will continue to increase throughout the year.
“Looking further ahead, the new and used car supply constraints will last for much of next year, and with the economy set to grow, we can expect to see the very robust levels of consumer demand continue,” said in December Auto Trader’s director of data and insights Richard Walker.
“Simple economics therefore point to a continuation of very strong price growth well into 2022.”