Average Used Car Now Costs £17,655 as Older Models Jump 10 Percent in a Year

The average used car now changes hands for about 17,655 pounds, and the part of the market climbing fastest is not the shiny nearly new metal but the old bangers most people overlook. Figures from Auto Trader’s Retail Price Index for May 2026 show prices edged up by around 23 pounds month on month to that 17,655 pound average, while cars more than ten years old jumped 10.6 per cent over the year to about 7,637 pounds. If you are buying or selling a second hand car this summer, the value is shifting in ways that reward knowing where to look.

For sellers of older cars, that is unusually good news. For buyers, it means the cheapest end of the market is no longer the bargain it once was, while used electric cars have quietly become some of the strongest value on any forecourt. Here is what is happening to used prices and how to use it.

Why old cars are holding their value

The headline figure hides a market pulling in two directions by age. Demand for older, cheaper cars has been outstripping the supply of them for months, and that is pushing their prices up far faster than the market as a whole. The driver is a shortage at the younger end. There are roughly 1.8 million fewer three to five year old used cars on the market than there were in 2019, a hangover from the pandemic years when far fewer new cars were built and registered. Those missing new cars of a few years ago are the missing used cars of today.

With fewer late model cars to go round, buyers on a budget have moved down the age range, and competition for high mileage, older stock has firmed up prices that would normally be falling. It is why a ten to fifteen year old runabout that might once have been almost worthless can now command several thousand pounds, and why the strongest year on year price growth is concentrated among cars most people think of as past their best.

Used electric cars are now the value buy

The clearest opportunity for buyers sits in the electric aisle. Used EV values have softened over the past year even as demand has risen sharply, an unusual combination created by a wave of cars coming off lease and aggressive discounting on new electric models that drags down the secondhand price of the outgoing ones. The result is that a used electric car often looks expensive on the windscreen sticker but cheap once you factor in running costs.

Auto Trader’s data shows used EVs have been the fastest selling fuel type on its platform, taking around 30 days to find a buyer against 35 days for petrol equivalents, and demand for them has risen by more than a quarter year on year. Three to five year old electric models, where prices have stabilised and now sit close to their petrol equivalents, sell even faster. The platform estimates electric ownership can save up to 1,500 pounds a year in running costs against a comparable petrol car, money that goes a long way to offsetting a higher purchase price over a few years of ownership.

That does not make every used EV a good buy. Battery health, charging access at home and the size of any remaining manufacturer battery warranty all change the maths. But for a driver with a driveway and a predictable commute, the gap between a used EV’s purchase price and its true cost of ownership is one of the widest value openings in the current market.

The wider market is stable, not booming

Step back from the age bands and the overall picture is one of stability after years of turbulence. Used car sales reached an estimated 7.8 million transactions in 2025, up around 2 per cent on the previous year, and the market is forecast to grow by a further 3 per cent towards 8 million this year. Average prices have moved only marginally over the past twelve months, a long way from the double digit swings seen during the supply crunch.

Petrol and diesel cars have actually outperformed the market on value, holding firm as some buyers stay cautious about switching to electric. That stability cuts both ways. Sellers are unlikely to see the runaway gains of a couple of years ago, but they are also unlikely to be caught out by a sudden collapse. Buyers, meanwhile, face a market where patience and research matter more than timing, because there is no obvious crash coming to wait for.

What to do if you are buying or selling

The split market rewards anyone willing to do a little homework before they commit.

• If you are selling an older car, do not assume it is worth scrap money. Get a free online valuation and check what similar cars are actually listed for, because the ten year plus segment has risen far faster than owners expect.
• If you are buying on a tight budget, widen your search. The squeeze on three to five year old cars means stretching to a slightly older or higher mileage example, or a less obvious model, can find better value than chasing the popular choices everyone else is bidding on.
• Take used electric cars seriously. Ask for a battery health check, confirm how much of the battery warranty remains, and weigh the lower running and tax costs against the purchase price over the years you plan to keep it.
• Check the history before you pay. Run the registration through an MOT history check and a finance and write off check, and treat a car with a patchy service record or repeated advisories with caution wherever it is being sold.
• Be wary of where a car has lived. Coastal and rural cars can carry more corrosion and suspension wear, which shows up as MOT failures and future bills, so factor location and use into the price you offer.

The takeaway is that the used market is no longer one story but several. Old cars are dearer than they look, used electric cars are cheaper than they look once running costs are counted, and the middle of the market is calm. For anyone buying this summer, the smart money is on matching the car to how you actually drive rather than chasing a headline price. Our recent look at why more than a quarter of new cars sold in May were electric shows how quickly the fleet is shifting, and that shift is exactly what is reshaping used values now.

The age band that loses value fastest is still the newest. Nearly new cars under a year old have seen prices contract as carmakers discount new stock and the supply of late model cars slowly recovers, which means the steepest depreciation hit lands in the first two to three years of a car’s life. For a buyer who does not need the latest model, letting someone else absorb that drop and buying a well kept three to four year old car remains one of the most reliable ways to get value, provided the younger end of the market has not already been picked clean.

Finance is worth factoring into any decision too. With more drivers buying on personal contract purchase or hire purchase, the monthly payment can shape the deal more than the sticker price, and a car with a higher list price but stronger resale value can cost less to own than a cheaper car that depreciates quickly. Comparing the total cost over the length of the agreement, including the deposit, the interest and any final balloon payment, gives a truer picture than the headline number on the windscreen. With prices broadly stable, there is time to run those figures properly rather than rushing into a purchase you regret.

Sources:

• https://www.bodyshopmag.com/2026/news/affordability-shifting-uks-used-car-market/
• https://plc.autotrader.co.uk/news-views/retail-price-index/
• https://plc.autotrader.co.uk/news-views/press-releases/used-car-market-enters-2026-with-positive-momentum-as-2025-sales-finish-2-ahead-of-previous-year/