The latest on used car prices

Despite the political and economic turbulence of recent months, the used car market remains stable, with retail prices rising, vehicles selling at record speeds, and sales volumes increasing. However, with supply complexities persisting, retailers are urged to utilise available data to unlock more margin in their stock.   

On a like for like basis, the average retail price of a used car rose 1.5% between March and April. Whilst this trend largely follows seasonal norms, it’s the strongest rate of month-on-month (MoM) growth since April 2023. April also marked the first time in 19 months that retail prices haven’t contracted year-on-year (YoY), with current values flat versus April 2024.  

 The positive movement is being fuelled by robust levels of consumer demand, particularly within the 5-10 and over 10-year-old vehicle cohorts, where demand is rising at a faster pace than the volume of supply entering the market. As a result, its these age groups that are recording the largest increase in average prices, with 5-10-year-old cars growing 1.5% MoM and 1.1% YoY (£13,866), whilst those aged over a decade surged 3.3% MoM and 1.4% YoY (£6,545). 

Highlighting the nuance in the market, however, vehicles aged less than a year old, where the returning level of supply is outpacing the otherwise solid demand, average prices (£33,026) are increasing at a slower rate. In April, prices of nearly new cars increased 1.3% MoM but fell back -4.4% YoY.  

Used cars leaving forecourts at record pace 

The healthy appetite for used cars more broadly is evident in the speed in which they’re leaving forecourts. Used cars took an average of just 27 days to sell in April, which is a day faster than last year, and the fastest April since we began tracking speed of sale2. Those cars aged 5-10-years-old are selling even faster; at just 25 days, they’re the current fastest selling age cohort. 

As well as strong consumer engagement on Autotrader throughout April (circa 82.9 million consumer visits), our retail sales data show the volume of used car sales rose around 1.3% YoY last month despite Easter falling in April this year.  

Gap closing on retail and trade values 

Trade values recovered at a faster rate following the steep decline in autumn 2023 but have begun to slow again over recent months, particularly within younger cohorts. As well as helping to improve vehicle margins, the rise in retail prices point to greater pricing confidence among retailer, with the number of used cars being priced above market value rising from 30% to 33% in April. 

Despite rising confidence however, there is still significant margin potential being missed. Our data indicates there’s currently £25 million being left on the table due to in-demand3 vehicles being priced below market value. It equates to £2,820 of margin opportunity per retailer and £390 per vehicle.