The used car market is entering Q4 2025 in good health, with demand, speed of sale, retail prices, and overall transactions in a robust position, says Autotrader.
Autotrader notes sourcing challenges have accelerated due to the growth in fleet sales, reducing the volume of stock re-marketed via traditional routes.
Marc Palmer, Head of Strategy and Insights at Autotrader, said: “Prices are growing, demand is robust, and cars are selling at pace, which should give retailers confidence for the months ahead. But, while the appetite for used cars is strong, sourcing remains the industry’s Achilles’ heel—especially for those reliant on younger stock.
“The growth in fleet sales over recent years means fewer cars are returning to the market via traditional routes, putting the squeeze on available supply and intensifying competition for the best cars.
“To stay ahead, retailers must let data steer their strategy, identifying new sourcing opportunities and maximising every margin. In short: demand is robust, but in today’s market, smart data-driven decisions will determine the best performing retailers.”
In September, the average price of a used car reached £17,036, a 0.6% increase on a YoY and like-for-like basis.
Autotrader’s Retail Price Index shows a softening on a MoM basis, with prices down -0.1%. However, this is in line with seasonal norms: used prices drop around -0.3% in September.
Overall sales growth, with Autotrader’s data indicating the market increased 1% YoY in September, is being driven by independent retailers. These sales increased around 3% YoY, less impacted by the ongoing shortfall of 3-5-year-old cars (-11% YoY), a core segment for franchise businesses which saw sales soften around -2% YoY.
Initially driven by the pandemic’s 3mn new car shortfall, the younger car supply challenge is now being compounded by significant changes to new car sales channels. Fewer cars re-entered the market via traditional ‘franchise friendly’ routes, such as part exchanges or PCP upgrades or renewals.
Franchise retailers have compensated for the shortfall by increasing their share of 1-3-year-old cars. Independent businesses take advantage of more ex-fleet stock remarketed through auctions and buying platforms.
