What Factors Influence Second-Hand Car Prices the Most?

Introduction

In this day and age, buying a used car is becoming increasingly expensive, especially compared to new cars. But why is this happening? What is driving the price of second-hand cars so much, especially compared to a decade ago? To explore this question, I analyzed a dataset of second-hand car listings from Kaggle to identify the most influential factors on used car prices.

How Does the Year of Manufacture Impact Price?

This chart shows a clear relationship between the car's age and its price. As expected, newer cars command significantly higher prices, with the median price rising steadily from around £4,500 for cars made in 2000 to almost £49,000 for models in 2025. This trend reflects buyer preferences for newer vehicles due to improved safety features, modern conveniences, and a lower risk of mechanical failure. Sellers can price newer cars higher because demand is stronger, while older vehicles naturally depreciate in value.

How Do Different Brands Affect Price?

The brand of a car plays a major role in its resale value. Luxury brands like Porsche and BMW generally maintain higher prices, showing a wide range of listings that reflect different models and conditions. Mainstream brands such as Ford and Toyota typically have lower median prices but offer more affordable options for budget-conscious buyers. Understanding brand-specific pricing helps buyers align their choices with their budget and expectations, while sellers can set competitive prices based on brand reputation and demand.

What Role Does Mileage Play in Pricing?

Mileage is a crucial factor in determining a used car’s price. This chart illustrates that cars with fewer miles tend to have higher median prices, with a noticeable drop-off after 100,000 miles. This makes sense, as higher mileage typically indicates more wear and tear, and increases the likelihood of costly repairs. Buyers who prioritize longevity and reliability may prefer lower mileage cars even if they cost more upfront.

Which Brands Dominate the Market?

Finally, looking at the number of listings per brand provides insight into market availability. Ford and Toyota dominate the UK second-hand market with the highest quantities of cars listed, offering buyers a wide selection. These brands' popularity may be due to factors like affordability, reliability, and brand loyalty. Meanwhile, luxury brands have fewer listings, which can affect their prices due to supply scarcity.

Conclusion: Why These Insights Matter

For buyers, this analysis highlights how key factors like age, mileage, and brand influence price, enabling more informed decisions based on personal needs and budget. Some buyers may prioritize affordability and choose high-mileage Toyotas, while others might seek luxury and newer models despite the higher cost.

Sellers, on the other hand, can use these trends to better price their vehicles and anticipate market demand. Knowing how much value is retained over time, or how mileage impacts price, can help maximize resale value.

Understanding these dynamics contributes to a healthier, more transparent used car market—benefiting both buyers and sellers.

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