Used car prices have increased during the pandemic

The traditional fall in used car prices as models get older has been flipped during the pandemic, with the typical used car now 3.2 per cent more expensive than it was this time last year.

Vehicle pricing experts Cap HPI revealed the data to CarDealerMagazine.co.uk, showcasing how many of the top performing cars actually saw prices go up by more than 10 per cent.

The Citroen C3 Picasso saw the highest increase of 17.4 per cent, representing £1,050 on its value. This put it ahead of the Jaguar F-Type, whose £4,261 increase was a jump of 14.3 per cent.

Increasing numbers of people taking ‘staycations’ had an effect on motorhome and caravan prices, which helped the Volkswagen Caravelle jump 13.6 per cent (£3,625).

The Toyota Land Cruiser (13.5 per cent/£3,216) and Mini Cooper S (13.4 per cent/£3,216).

While increased prices might seem illogical, industry experts say that it has been expected. Demand for used cars increased during the pandemic as people were encouraged to stay off public transport, while those who could not go on holiday have spent the money on a car instead.

Senior Cap HPI editor Chris Plumb told Car Dealer: “In more normal years, cars are generally worth between three-to-five per cent less than their equivalents a year earlier as they age within their lifecycle.

“But 2020 has seen values increase on average by 3.2 per cent for three-year-old cars. This means that they’re worth around £400 more than the same make and model with the same mileage was in December 2019.

“The used car market has been particularly robust in what has been an unprecedented year – buying and selling online has become the norm for the trade and to a certain extent consumers.”