Used car prices rose for the 40th month on the spin in July but growth did begin to slow compared to previous levels.

That is according to Auto Trader, which has revealed its latest Retail Price Index, analysing trends across the used car market.

The data found that prices rose 2.4 per cent year-on-year last month, reaching an average of £17,920.

While the average retail price was up on the £17,756 reported in June’s statistics, year-on-year growth took a dip from last month’s 3.2 per cent.

The figures mean that the average second-hand car now costs more than £4,000 more than it did in April 2020, which was the first full month of lockdown.

The data is based on around 800,000 daily pricing observations on Auto Trader’s retail platform