Used cars are continuing to hold their value, according to the latest data.

Data from Auto Trader's Retail Price Index shows the average price of a used car in July was £17,173 - a 19.5 per cent increase on the same period last year, as reported by AM Online.

Andrew Perry, director of Avenue Cars in Gloucester, said: "This is due to the continuing war in the Ukraine and lockdowns in China hampering the supply of components used to build the vehicles and restricting the natural flow of part exchanges back into the market as we would normally expect.

"This is likely to continue for the next six to 12 months."

The rate of growth is slower than the 32.2 per cent recorded in April this year, but Auto Trader said this doesn't mean the market is in reverse or decline, despite current economic uncertainty.

Growth in the used car market is now overlapping last year's already very high levels - in July 2021, prices were up at a then all-time high of 14.1 per cent year-on-year.

The average price of a used car in July 2022 was £3,300 higher than July 2020 and £4,100 higher than July 2019.

Auto Trader's research also found that 43 per cent of consumers were more confident than last year about their ability to afford their next car.