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Buying a used car? This is the “sweet spot” experts think you should look out for. 

Purchasing a three or four-year-old car could mean you make a significant saving, with data from AA Cars showing they are markedly cheaper than a year earlier. 

The Peugeot 3008 tops the list of three-year-old cars with the biggest price drop, with average costs falling 19.4% from £18,603 to £14,989, the data showed. 

The Ford Kuga followed closely behind, falling from £19,702 to £15,980 or 18.9%. 

A three-year-old Ford Ranger now costs an average of £18,209 – down from £22,434. 

Among four-year-old models, the Toyota Prius stands out, with average prices falling from £15,685 at the start of 2025 to £11,280 by the end of the year – a substantial saving of 28.1%, or £4,405.

“The used car market is offering some genuinely standout value, particularly among three-year-old models, where returning finance and lease vehicles are boosting supply,” James Hosking, managing director of AA Cars, said. 

“Pricing has become more competitive as stock levels improve and buyers have more choice, translating into stronger negotiating power than we have seen for some time.”

Rohit Parmar-Mistry, founder at data company Pattrn, said prices of three to four-year-old cars tend to fall because a wave of new lease and company cars hit the forecourts, the manufacturer’s warranty often expires, and buyers start pricing in the vehicles’ first bigger services. 

 “Three and four years is the sweet spot where a car stops feeling ‘nearly new’ in the market, even if it still drives like one,” he said. 

“Advice: ignore monthly price and look at total cost. Check service history, tyres and brakes, run an HPI check, and ask why it is being sold. If it is hybrid, ask for battery health and recall history.”