The Curious Case of Ageing Cars Increasing in Value

The car market is going through a curious trend where ageing cars are increasing in value.

Predominantly, the older a car, the less it should cost to buy second-hand, excluding the classic car sector. However, due to pent up demand, and a global shortage of parts and materials, the flow of new cars into the market has slowed.

The result? More buyers looking at the second-hand industry with AA Cars research highlighting the change in buyer behaviour.

They compared the prices of three, four and five-year-old cars between 2019 and 2021 and the outcomes showed the cost of a three-year-old Mini Hatch now was 57% higher (£15,367) than a model of the same age in 2019 (£9,811).

The price of a five-year-old version of the same vehicle jumped 15% in value compared to a three-year-old model’s worth in 2019, meaning the car had gained value despite being two years older.

Of the 10 most popular cars listed on AA Cars (aged three to five years), Audi A3s saw the biggest rise in value in two years, going up 46%, with the Ford Focus just behind on 43%. The Ford Kuga and Volkswagen Polo also featured prominently.

James Fairclough, chief executive of AA Cars, said; “With the exception of houses and some classic cars, things rarely go up in value as they age.”

It comes amidst a backdrop of falling new car registrations, with only 215,312 in September, the worst number since 1998. Electric car sales in the UK continued to surge.

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