Used car prices fell by 1.5% in December, and are expected to continue to fall this month

Used car prices fell by one and a half percent in December 2022 - the biggest drop since March and April, which both dropped by 2.1%, according to Car Dealer Magazine.

The data supplied to Car Dealer Magazine from the valuation company, CAP HPI means the average three year old car with 60,000 miles on the odometer dropped by £300 in December. HPI said this was ‘in line’ with the five-year average, and shows the strength of the market, despite the economic struggles the country has faced over the last year (and will continue to face this year).  

The average one year old car fell by 1.7%, or £590 - the biggest drop in this sector.

Five and ten year old cars only dropped by 1.4 and 0.8%. Making them the cars that fell the least.

Multi-purpose vehicles (MPVs) were the body type that dropped the least by just 0.7% (or £120 at three years) - this could be to a lower demand.

Diesel and petrol cars prices declined by 1.3% (£240) and 1.5% (£300), while electric vehicles plunged by 5.2% (£1,625) in December and a staggering 10.4% in the past four months.

Examples inlclude: Teslas Model 3s, which fell by 9.6% (£3,000), Model Ys fell by almost 6%, Audi's eTron fell by 5.9 per cent, Mercedes-Benz EQC by 10.6 per cent and Jaguar I-Pace by 8.7 per cent.

More affordable EVs such as the Nissan Leaf reduced by nine per cent.