Used cars, which pushed up UK inflation during the pandemic, are now getting cheaper as Britons sell their vehicles in response to soaring fuel costs and a broader squeeze on household budgets.
Inflation hit a 40-year high in June, driven by products ranging from motor fuel to eggs, but prices for second-hand cars fell 2.5 percent, according to Office of National Statistics data. That marked a fifth consecutive monthly drop and the longest losing streak since 2017.
Prices took off in 2020 when consumers flush with lockdown cash sought used cars as an alternative to public transport.
At the same time, semiconductor shortages and snarled supply chains made new vehicles more scarce. Now, with wages rising at a slower pace than inflation and fuel costs surging, second-hand cars are becoming a luxury.