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The rising cost of living is starting to affect the used car market, with sales down by 8.3% for the year to the end of October, according to analyst Indicata.
However, it said stock levels had increased by 5.9% compared with 12 months ago, which it said was welcome news in a market devoid of used cars for over two years.
Prices were down by 0.3% month-on-month in October, and fell by 4% during the first ten months of the year.
Indicata UK group sales director Jon Mitchell said: "The used market remains very healthy but the continuous rise in the cost of living has taken the sting out of consumer demand. This trend seems to have set the tone for the industry into early 2023.
"But while new car supply remains restricted used car prices will remain stable because of the major stock shortages the industry continues to experience."
The rising cost of living is also said to be impacting the speed at which used EVs are selling due to them being significantly more expensive to buy than a used petrol or diesel car.
Indicata said used petrol cars were now selling twice as quickly as EVs, a reversal from the trend seen in August.
It said ongoing driver education from the industry continued to encourage drivers to buy a zero-emission used car for the first time, and that its data confirmed sales of EVs continued to increase, albeit from a small base, even if they were taking longer to sell.
Mitchell said: "Used EV sales haven't ground to a halt but are taking twice as long to sell. Many of our dealer customers are stocking both used hybrids and EVs in preparation for when the market moves towards low or zero-emission motoring."
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