The cost-of-living crisis and soaring fuel prices are driving cash-strapped motorists into smaller second-hand superminis as they overtake larger family SUVs in the used-car sales stakes.
Handy hatchbacks and perky city cars were the fastest-selling used cars of 2022, according to the ranking by AA Cars of vehicles sold on its website.
And the classic but soon-to-be-discontinued Ford Fiesta retained its title as the biggest-selling car overall for the eighth year in a row.
Iconic: The the classic but soon-to-be-discontinued Ford Fiesta has retained its title as the biggest-selling car overall for the eighth year in a row
It was followed by the Ford Focus; Volkswagen Polo; Volkswagen Golf; Nissan Qashqai; Vauxhall Corsa; Fiat 500; Mercedes C Class; Ford Kuga and Toyota Yaris. The Nissan Qashqai and Ford Kuga are the only compact SUVs in that list.
Small but mighty
AA Cars said the trend for smaller vehicles reverses the picture in 2021, when eight of the top ten models were SUVs.
It believes the surging popularity of smaller, lighter, more fuel-efficient cars is down to soaring fuel prices, which in the 12 months to the end of November rose by 17.2 per cent, according to official statistics, peaking in July at a record 191p per litre for unleaded and 199p for diesel.
AA director Mark Oakley said: ‘This year’s ranking of the fastest-selling used cars is almost entirely dominated by smaller models, in stark contrast to 2021’s SUV-heavy list.
‘The sharply rising cost of living and fuel is inevitably influencing people’s purchasing decisions.
‘Hatchbacks and city cars tend to be cheaper to buy than SUVs, while their smaller size and lower weight mean they can also offer better fuel economy — which makes them particularly attractive in the current market.’
Mr Oakley added: ‘Throughout the year, we’ve seen a steady stream of cost-conscious buyers drawn to the greater choice — and reduced risk of depreciation — that second-hand cars offer compared with brand new models.’
But he believed 2022 might prove ‘the high-water mark’ for the all-conquering Fiesta, which for years has been the most popular used car of all: ‘Ford has confirmed that production of the Fiesta will cease next year, without saying what will replace it.’
Comeback kid
However, there is still plenty of life in the SUV market as we accelerate into 2023. Car website AutoTrader notes: ‘SUVs still dominate the new cars coming in 2023, although there are signs of hope that estates, hatchbacks and saloons may be undergoing a reinvention and comeback of sorts.’
Among the new SUVs arriving this year are the all-electric Jeep Avenger, Volvo EX90, Polestar 3 and Kia EV9; the BMW XM and — a first — the £300,000 Ferrari Purosangue.
Analysis by AutoTrader also found that average used car prices in Britain are more than £4,000 higher than before the pandemic, with some second-hand cars appreciating in value.
It said the average price of a used car was at record highs in 2022 — at £17,548 compared with £15,204 in 2021, £13,538 in 2020 and £12,999 in 2019.
However, there are signs of a turn as the UK and international economies become more fragile, which could mean bargains for canny buyers prepared to haggle over the price.
The respected Car Dealer magazine (car dealermagazine.co.uk) noted recently: ‘Used car prices in the trade dropped by 1.5 per cent in December — and values of second-hand electric cars continued to slide.’
Citing data shown to Car Dealer by trade valuation experts Cap HPI, it reported: ‘December was the third biggest drop in prices in 2022 after March and April, which both dropped by 2.1 per cent.
‘It means the average three-year-old used car with 60,000 miles on the clock dropped in value by about £300.’
Price movement from December into January was ‘in line’ with the five-year average, showing ‘the overall strength of the market despite the economic turmoil the country has faced this year,’ said the experts.
However, the average price of one-year-old cars dropped by 1.7 per cent, or about £590 — the largest drop all year for this sector.
Prices for five-year-old and ten-year-old cars dropped the least — by 1.4 per cent and 0.8 per cent respectively.
Failing to spark
Against a background of anger over the insufficient number of public electric car charging points, prices of second-hand EVs have fallen fastest — which is naturally good news for buyers but a big concern to those selling.
Among the fastest fallers were second-hand prices for Tesla’s Model 3, which dropped by 9.6 per cent, or about £3,000, while the Model Y fell by nearly 6 per cent.
Cap HPI said battery electric vehicles were ‘the most challenging area of the used car market’ in December, as EV values fell for the fourth month in succession.
The price for three-year- old EVs is down by a record 5.2 per cent, or about £1,625.
Car Dealer magazine noted: ‘When the past four months are added together, values have fallen by 10.4 per cent, or around £3,500.’
So if you’re looking to bag an EV bargain, now’s the time to start shopping around.
Peugeot’s bid to go the distance
Peugeot today unveiled a radical vision of its future with a new electric all-wheel drive car called Inception — with a range of nearly 500 miles and supercar acceleration from rest to 62 mph in less than three seconds.
The French car giant says the dramatic new prototype concept car with a vast glass cockpit ‘opens a new chapter and presents its vision of the future of the automobile’.
Radical concept: Peugeot’s Inception has a range of nearly 500 miles and supercar acceleration from rest to 62 mph in less than three seconds
Although some of the more fanciful ideas — such as dispensing with the steering wheel and replacing it with finger-touch controls familiar to video gamers and smartphone users — are unlikely to make it into final production yet, Peugeot insists: ‘Our ambition is to bring most of its innovations to production from 2025.’
Stretching to some 5m long, the 100 per cent electric Peugeot has the low, sleek silhouette profile of an aerodynamic coupe.
It is driven by two compact electric motors — one on each axle — giving four-wheel drive and power close to 680 hp (500 kW) equivalent to six Ford Fiestas, allowing it to accelerate from rest to 62 mph (100 kmph) in less than three seconds.
Its 100 kWh battery allows it to travel 496 miles on a single charge. It is equipped with 800V technology and energy consumption is at 12.5 kWh per 100 km (62 miles).
The battery charges the equivalent of just under 19 miles (30 km) of range in one minute, or 93 miles (150 km) in five minutes.
Inception can also be recharged wirelessly by induction — like many mobile phones — without the need for a cable, but simply by driving over an electrified pad.
