Prices remain higher than before Covid despite first drop since the pandemic
The average price of used cars fell for the first time in over two years, as supply chain problems started to ease for manufacturers.
New inflation figures from the Office for National Statistics show that the price of second-hand cars fell by 2.7pc in the year to October.
This is the first month that it has gone negative since the onset of the pandemic. However, it follows 23pc growth in the year to October 2021, meaning that prices are still much higher than before Covid.
“[It] reflects that hopefully things are opening up in the new market and some of the supply side constraints will start to ease particularly around chips,” said David Bailey, professor of business economics at Birmingham University.