Rising prices, healthy demand, and faster selling times were seen in the used car market in March, says Auto Trader.
The average used car price rose to £16,915, up 0.1% MoM, marking the second consecutive month of price growth.
Richard Walker, Auto Trader’s data & insight director, said: “March’s data reinforces the ongoing evolution of the used car market. While price confidence among retailers is growing, the market remains dynamic, particularly with the influx of used EVs.
“Retailers who leverage real-time data and advanced pricing strategies, pricing their cars ‘retail back’, will be best positioned to optimize margins and maintain a competitive edge in the months ahead.
“As the used car market adapts to shifting supply and demand trends, a data-driven approach will be essential for retailers to navigate the complexities and sustain profitability in the coming months.”
Overall used car demand grew +1.0% YoY while supply increased +5.7% YoY.
Used cars are taking an average of 25 days to sell, down two days from February. Petrol cars sold in just 24 days, making them the fastest-selling fuel type.
Prices for petrol and diesel engines rose to £14,849 (up +0.1% MoM) and £14,276 (up +0.8% MoM) respectively.
Downward pressure on used EV prices (down –1.6% MoM to £25,190), caused by the supply and demand imbalance is making them a more attractive option.
Supply of used EVs increased +54.7% YoY, largely due to ex-lease vehicles returning to the industry, outpacing EV demand growth of +35.9% YoY.
Almost all age cohorts of vehicles returned to positive YoY price growth in March. Retail prices for 3-5 year old vehicles have now seen price movements of +0.9% YoY despite constrained supply.
