Whilst inflated car prices present problems for those looking to buy used cars at present, they are resulting in very cheap motoring for many. I was talking to a dealer the other day and he told me that he is taking back cars in part exchange from customers at prices that are only a few hundred pounds less than the customer paid for them 2 or 3 years ago!
Thinking about it, the two cheapest cars that I have ever run were the two oldest – one that was 8 years old and one that was 7 years old. I sold them both after 18-24 months for more than I had paid for them. Millions of people never spend more than a few thousand on a car, so their total motoring costs are always limited and would never come anywhere near to the £10k (plus AP) that we spend every 3 years on a Motability car. I suspect that a good number of those are the 1.2m people who are eligible to join Motability but choose not to. In the current cost of living climate, I suspect that many people who exist on benefits wouldn’t dream of spending £10k every 3 years on a new car when they can get from A to B at a fraction of the cost. Having a brand new car is a choice, not a necessity.