4-year-old vehicles cost more in 2022 than 2021

Used vehicles retained more value in 2022 than 2021 as demand pushed prices up while new vehicle sales slowed because New Vehicle Price Inflation was high in the first half of 2021 and the semiconductor shortage hampered production in the second half of the year.

This is according to data released by Lightstone Auto at the end of February.

 4-year-old vehicles cost more in 2022 than 2021

Pieter Wessels, Managing Director of Lightstone Auto, said four-year-old vehicles represented the largest share of finance transactions by vehicle age, and the graph above shows the leap in value retention as LCVs (Light Commercial Vehicles) leapt 7.84% from 72.70% in February 2021 to 78.40% a year later. PAS (Passenger Vehicles) Used Vehicle Retention jumped 6.53% from 72.34% to 77.06%.

Brands such as Ford, Honda, Nissan, Isuzu, Opel, Peugeot, Toyota, and Volkswagen recorded significant positive Used Vehicle Retention gains in 2022, reversing a trend where they had been retaining less value year-on-year. Of the 15 brands listed in the graph below, only Jaguar’s Used Vehicle Retention fell in 2022 from 2021. This, despite Jaguar’s outperformance of all other brands measured on UVR last year. 4-year-old vehicles cost more in 2022 than 2021

The plot chart below shows the change in Used Vehicle Retention of four-year-old vehicles in February 2021 against the change in overall vehicle sales in 2020. “We can see most brands experienced year-on-year sales declines and consequent low Used Vehicle Retention in February 2021 – other than Jaguar which recorded a high Used Vehicle Retention”, he said. 4-year-old vehicles cost more in 2022 than 2021

 The second plot chart (below) shows the change in Used Vehicle Retention of four-year-old vehicles in February 2022 against the change in overall new vehicle sales in 2021. Most brands increased vehicle sales in 2021 compared to 2020 and we also notice higher Used Vehicle Retention. Brands such as Honda, Mazda, Ford, and Audi, all of which recorded declining new vehicle sales, experienced higher Used Vehicle Retention in February 2022.4-year-old vehicles cost more in 2022 than 2021

Most brands increased vehicle sales in 2021 compared to 2020 and we also notice higher Used Vehicle Retention. Brands such as Honda, Mazda, Ford, and Audi, all of which recorded declining new vehicle sales, experienced higher Used Vehicle Retention in February 2022.

*Used Vehicle Retention - Retained % of a vehicle’s New List Price recorded when sold as a used vehicle