Motorists are facing a shortage of affordable petrol and diesel vehicles with the number of models under £5,000 dropping, according to analysis.
AutoTrader, the leading marketplace for new and used vehicles in the UK, has revealed data showing a considerable drop in numbers over the past decade.
AutoTrader claims stock volumes of vehicles below £5,000 have also fallen by 75 percent between January 2016 and 2024 with just 24,359 cars available.
Meanwhile, analysis shows that stock volumes for vehicles under £11,000 are also down by almost half (46 percent) over the same period.
AutoTrader has suggested the news could be a major blow for young drivers who rely on cheap models to take their first step into motoring.
More than half (58 percent) of 17 to 24s who had bought a car had done so for under £11,000.
However, with more than 700,000 18 to 20-year-olds thought to hold a licence, many could be getting priced off the roads.
Erin Baker, Auto Trader’s Editorial Director said: “Car ownership and usage is vital to young people, but cost remains a clear barrier.
“They also show higher levels of interest in electric cars – but are less likely to be able to afford them, thanks to stock shortages caused by Covid. Those dynamics are only likely to be addressed over time.”
According to AutoTrader, the impact of the pandemic on the supply of new cars has led to a lack of affordable stock.
The motoring experts stressed the lack of models available has led to inflationary pricing pressure on many vehicles.
However, younger motorists are not only facing higher upfront prices with running costs also now a major concern.
According to the latest data from price comparison service MoneySuperMarket, the cost of insurance policies has sky-rocketed.
Among 17-year-olds prices have increased by 67 percent and with bills rising by up to 40 percent for 18-year-olds over the past year.
Meanwhile, MoneySuperMarket’s Household Money Index has suggested the average cost of the first year of motoring for an average 17-20 year-old is a staggering £7,609.
It comes just months after data from Startline Used Car Tracker revealed dealers were anticipating a fall in prices this year.
According to the analysis in March, more than eight out of ten used car dealers (84 percent) believe there will be a drop in used car values before the end of 2024.
The poll found 20 percent of respondents think the rate of the price fall will accelerate over time. Meanwhile, 36 percent said they were worried the 2024 price drop would be less severe.
