Buying a used car costs almost half of Brits' salary

Research conducted by Vanarama using that data discovered that only three costs of living have seen a bigger increase than used cars.

Costs of used cars have even risen above alcohol and tobacco, which show a much steadier increase of 4%.

This is largely fuelled by Covid-19 and the lockdowns that meant UK cars were driven less than usual – resulting in lower mileages and therefore higher asking prices.

A global shortage of microchips, a vital component in car production, has also contributed.

Used car prices have even risen above alcohol and tobacco (PA)

How much of a yearly salary would it cost to buy a used car?

Vanarama researched the average UK salary alongside the average used car price over the past five years.

In 2017, when the typical salary was under £29k and used cars under £12k, a used vehicle took only 41.5% of the average person’s wage.

Now, second-hand vehicles are taking almost 6% more of our annual income, and quickly approaching 50%.

The increasing disparity wasn’t helped by 2021’s drop in pay (the first post-2000 decrease), while the cost of a used car had its largest yearly increase in more than half a decade.

What were the average prices for used cars in the last five years?

2017 - £28,759 (Average UK salary), £11,943 (Average price of used car)

2018 - £29,559 (Average UK salary), £12,799 (Average price of used car)

2019 - £30,378 (Average UK salary), £13,087 (Average price of used car)

2020 - £31,487 (Average UK salary), £13,848 (Average price of used car)

2021 - £31,285 (Average UK salary), £14,775 (Average price of used car)