Older Cars Keep Getting Pricier, And That’s Changing How Near-Prime And Sub-Prime Deals Need To Be Written

Something interesting is happening at the older end of the used car market.

While nearly-new prices have been flat or drifting down, 10–15-year-old cars have quietly kept climbing. Auto Trader’s latest data shows prices in this bracket are up 8.5% year on year, and it’s not a one-off spike. This trend has been building for months.

For dealers and brokers working with near-prime and sub-prime customers, this matters more than almost anything else happening in the market right now.

Older cars are where affordability conversations usually land. When prices rise here, the risk picture, customer experience, and deal structure change.

What That 8.5% Growth Is Really Telling Us

At a headline level, the used market looks calm. Average prices across all ages have barely moved. Days to sell feel stable. Demand is ticking along.

But once you break it down by age, the story shifts.

Auto Trader’s December figures show the strongest growth sitting firmly in cars aged between 10 and 15 years. These are not prestige toys or collector vehicles. They’re everyday cars. Focuses, Golfs, Astras, older SUVs and family hatchbacks.

This isn’t about people suddenly wanting old cars. It’s about people needing them.

Budgets haven’t grown, but life hasn’t got cheaper either. Insurance, fuel, repairs, energy bills… it all adds up. When buyers hit a ceiling, they don’t walk away from owning a car. They move further down the age curve.

That’s why older cars are holding value. And that’s why replacing good older stock is getting harder than many dealers expect.

Why Buyers Are Still Choosing Older Cars

For most customers in this part of the market, the decision is very practical.

They’re not chasing tech. They’re chasing certainty.

A 12-year-old petrol hatchback with service history feels understandable. The running costs are familiar. The risks are known. Compared to a newer, more complex car they don’t fully trust, older stock can feel like the safer bet.

There’s also a simple affordability truth here. When the monthly payment is non-negotiable, people adapt. They accept higher mileage or an older plate as long as the numbers stay where they need them.

And importantly, many of these buyers still need a car for work, family, or care responsibilities. Mobility is not the first thing they cut back on, even when money is tight.

What This Means For Near-Prime And Sub-Prime Finance

This is where the conversation gets more serious.

When older cars rise in price, the margin for error shrinks.

The same customer, on the same income, is now borrowing more for a car that’s already well into its life cycle. That brings higher loan-to-value ratios, tighter affordability, and less room for unexpected costs.

It doesn’t mean these deals shouldn’t happen. But it does mean they need to be built properly.

A £300 repair bill hits very differently when someone is already stretched. Missed payments rarely start with bad intent. They usually start with a car that suddenly needs money the customer doesn’t have.

From a Consumer Duty point of view, this is exactly the sort of situation regulators care about. Outcomes matter just as much as approvals.

Older Cars Can Still Be Good Business, If You Handle Them Right

It’s easy to talk about risk and forget that older stock is still selling well. Demand hasn’t gone away. If anything, it’s become more focused.

Customers shopping at this end of the market often make decisions quickly once they find a car that fits their budget and feels honest.

That creates opportunity.

Deals can complete fast. Conversion rates can be strong. Relationships can last, if the customer feels they were treated fairly and the car does what they expected it to do.

The key difference now is that condition, prep, and explanation matter more than ever.

What Dealers And Brokers Should Be Doing Differently

The biggest shift isn’t in credit policy. It’s in conversation.

On older cars, customers aren’t just buying the vehicle. They’re buying the next two or three years of ownership. That needs to be part of the discussion.

Talking openly about likely wear items, warranty cover, and realistic running costs builds trust. It also reduces complaints later.

Term length matters too. Stretching an agreement just to make the monthly number work can store up problems, especially when the car’s value drops faster than the balance.

Shorter, more realistic terms can feel less attractive on paper, but they often lead to better long-term outcomes for both customer and lender.

Why This Trend Isn’t Going Away Quickly

Auto Trader’s data suggests the UK car parc will keep ageing over the next few years. Supply of newer used stock remains uneven. Cost pressures haven’t disappeared.

That means older cars are likely to stay relevant, and probably expensive, for longer than many expect.

The winners in this space won’t be the businesses that ignore the risks. They’ll be the ones that adapt how they explain, structure, and support these deals.

Because when customers feel looked after, they don’t just pay on time. They come back.

When affordability pushes buyers toward older cars, the right lending partner matters. Marsh Finance supports dealers and brokers with clear, responsible near-prime and sub-prime finance where it fits.

Partner with Marsh Finance today!