UK used car market sees steady prices and faster sales in April: Auto Trader

The UK used car market has remained stable in April, with retail prices increasing, vehicles selling more quickly, and sales volumes rising, according to Auto Trader’s latest data.

The increase in used car retail prices comes despite recent economic and political challenges.

Auto Trader said the average retail price of used cars rose by 1.5% from March to April, marking the strongest month-on-month growth since April 2023.

April 2024 was the first time in 19 months that retail prices did not contract year-on-year, remaining flat compared with the previous year.

Demand is particularly strong for vehicles aged five to ten years and those over ten years old, outpacing supply and contributing to price increases, the automotive marketplace said.

The average price for five to ten-year-old cars rose by 1.5% month-on-month and 1.1% year-on-year to £13,866.

Vehicles over ten years old saw a 3.3% month-on-month and 1.4% year-on-year increase, reaching £6,545.

In contrast, nearly new cars, less than a year old, saw slower price growth due to higher supply levels.

Prices for nearly new cars increased by 1.3% month-on-month but fell by 4.4% year-on-year.

The speed of used car sales also reflects strong demand, with cars selling in an average of 27 days in April, the fastest April on record for Auto Trader.

Five to ten-year-old cars sold even faster, averaging just 25 days on the market. Auto Trader reported around 82.9 million consumer visits in April, with used car sales volumes increasing by 1.3% year-on-year, despite the Easter holiday.

Trade values have recovered from declines in autumn 2023 but have slowed recently, especially among younger vehicles.

Retailers are gaining pricing confidence, with 33% of used cars priced above market value in April, up from 30%.

Despite this confidence, Auto Trader data shows significant margin potential remains untapped.

In-demand vehicles priced below market value represent £25m in missed opportunities, equating to £2,820 per retailer and £390 per vehicle.

Auto Trader head of strategy and insights Marc Palmer said: “The national media may be awash with unsettling headlines, but reassuringly, our data indicates the recent economic and political uncertainty has had little impact on used car buying demand.

“Although the overall health of the market will be welcome news to the industry, retailers continue to face challenges, with margins under increasing pressure. In today’s supply-constrained and heavily nuanced market, every vehicle counts, and so I would urge our partners to scrutinise the data to not only source the right stock for your forecourt, but price it correctly and confidently to the market.”