Used car sales continue to show robust demand and improving pricing trends, according to the latest Auto Trader Retail Price Index.
The average price of a used car in November was £16,492, reflecting a modest month-on-month dip of 0.6%, aligning with historic seasonal trends. This marks the fifth consecutive month of improving year-on-year pricing trends, signalling sustained retail demand.
Vehicles sold two days faster in November compared to 2023, with an average of 31 days on forecourts. Electric vehicles sold even quicker at 28 days, with three-to-five-year-old EVs turning over in just 22 days.
Despite this, Auto Trader data revealed up to £26.5 million in missed potential profit, as some retailers underpriced sought-after stock relative to market values.
The market’s strong performance is underpinned by resilient consumer demand and constrained stock levels in certain segments.
Stock levels fell by 6.6% year-on-year in November, marking the first month-on-month decline since July. However, demand was up 5.5% year-on-year, driving overall market health to a positive 13.0% compared to 2023.
In terms of pricing, the average cost of used petrol cars fell by 4.7% to £14,710, diesels declined by 5.8% to £14,077, and electric vehicles dropped 11.7% to £26,390. Plug-in hybrids experienced a 10.5% decline, with an average price of £30,598.
Looking ahead, Auto Trader forecasts continued strong growth, predicting the used car market will rise from an estimated 7.61 million sales in 2024 to approximately 7.70 million in 2025. This would bring the market within 3% of pre-pandemic volumes.
Commenting, Richard Walker, Auto Trader’s data & insights director, said: “November is continuing the trend of a strong finish to 2024. Last year many retailers followed the wholesale market in dropping prices sharply with a strong and somewhat unnecessary impact on retail values and profits. But buying confidence as well as retail pricing have steadied this year, as shown by the more typical price movements we’re reporting in recent months.
“We’re still seeing a significant amount of profit being left on the table though and with January’s buyers already on their purchasing journey, it’s vital retailers follow the data, whether in sourcing the best vehicles for their market or in pricing and merchandising their cars to maximise their commercial opportunities.”
