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Used car choices narrowing for people as loan values fall – research

  • Drivers are borrowing 5% less for used cars as cost-of-living crisis bites
  • Average finance per vehicle has fallen from £13,239 to £12,532, AA Car Finance data reveals
  • Mokka, Juke and Focus now out of reach for motorists needing average loan to finance whole vehicle

Time 7:04 am, November 1, 2023

Motorists are borrowing 5% less for used car purchases this year as the cost-of-living crisis bites.

That’s according to new data and analysis from AA Car Finance, which said that this time last year, the average loan would be enough to buy seven of the 10 most popular used cars.

But this year, only four would be affordable after price rises were taken into account.


The average amount financed per used car from January to August 2022 was £13,239.

That was enough to buy a second-hand Vauxhall Astra, Fiat 500, Vauxhall Corsa, Ford Fiesta, Ford Focus, Vauxhall Mokka, pictured, or Nissan Juke when AA Cars compared the prices of the top 10 most popular cars on its platform in Q3 2023 with Q3 2022.

However, the average value of approved loans fell to £12,532 in the same period this year, putting a Mokka, Juke and Focus out of reach when price rises were included.


And while the average approved loan term has fallen from 57.1 months to 54.5, average monthly repayments have barely changed, falling only slightly from £232 a month in 2022 to £230 in 2023.

AA Car Finance director Mark Attwell said: ‘The cost-of-living crisis has hit motorists hard, and many finance companies have made it tougher to get loans to protect themselves.

‘For many drivers, popular used cars like the Ford Focus at their average cost can be out of reach without a significant deposit.’

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He said that if drivers shopped around when buying second-hand cars they could save a lot of money.

Attwell added that people should also consider lengthening the loan term to keep repayments at the same level and give them more buying power.

Changing prices of the 10 most popular used cars

1) Vauxhall Astra

Average price in Q3 2022: £8,694

Average price in Q3 2023: £8,889

Annual price change: +2.2%

 

2)  Fiat 500

Average price in Q3 2022: £9,700


Average price in Q3 2023: £9,711

Annual price change: +0.1%

 

3) Vauxhall Corsa

Average price in Q3 2022: £9,223

Average price in Q3 2023: £9,926

Annual price change: +7.6%

 

4) Ford Fiesta

Average price in Q3 2022: £10,851

Average price in Q3 2023: £11,148

Annual price change: +2.7%

 

5) Ford Focus

Average price in Q3 2022: £12,695

Average price in Q3 2023: £12,745

Annual price change: +0.4%

 

6) Volkswagen Polo

Average price in Q3 2022: £13,397

Average price in Q3 2023: £13,035

Annual price change: -2.7%

 

7) Vauxhall Mokka

Average price in Q3 2022: £12,154

Average price in Q3 2023: £13,481

Annual price change: +10.9%

 

8) Nissan Juke

Average price in Q3 2022: £12,546

Average price in Q3 2023: £13,646

Annual price change: +8.8%

 

9) Nissan Qashqai

Average price in Q3 2022: £14,606

Average price in Q3 2023: +£15,493

Annual price change: +6.1%

 

10) Toyota Yaris

Average price in Q3 2022: £14,388

Average price in Q3 2023: £15,709

Annual price change: +9.2%

Source: AA Finance

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.



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