Average used car prices remain stable as retail demand grows

The UK’s used car market maintained a positive trajectory in March, with rising prices, high demand and faster selling times, according to data from Auto Trader.

The average used car price rose to £16,915, up 0.1% month-on-month and marking the second consecutive month of price growth.

While 0.1% appears small, it's against the seasonal average March price movements of a 0.4% contraction.

While overall used car demand grew 1.0% year-on-year – an encouraging indicator of resilient consumer demand – supply increased at a faster rate (up by 5.7% year-on-year), which has tempered further retail price acceleration.

Nevertheless, used cars are continuing to sell quickly, with an average of 25 days to sell, down two days from February, signalling strong retail engagement.

Petrol cars sold in 24 days, making them the fastest-selling fuel type.

Top 10 used car price growth (all fuel types) | March 2025 vs March 2024 like-for-like

Used EVs experiencing significant shifts

Supply of used EVs surged by 54.7% year-on-year, largely due to ex-lease vehicles returning to the industry, outpacing EV demand growth of 35.9% year-on-year.

Auuto Trader said the growing numbers of electric registrations mean supply of used electric stock is only set to increase. 

The imbalance between supply and demand is putting downward pressure on used EV prices (down 1.6% MoM to £25,190), making them a more attractive option for buyers.

Prices for petrol and diesel engines rose to £14,849 (up +0.1% month-on-month) and £14,276 (up 0.8% month-on-month) respectively.

Nonetheless, Auto Trader analysis suggests that despite improving pricing strategies, a significant portion of retailers are not fully capitalizing on demand, leading to missed profit opportunities.

Almost all age cohorts of vehicles return to positive YoY price growth this month.

While the supply of 3-5 year old vehicles remained constrained, supply of all other segments continued to grow.

Despite this, retail prices for 3-5 year old vehicles have now seen price movements up by 0.9% year-on-year.

Richard Walker, Auto Trader's data & insight director, warned that retailers must remain agile in a rapidly shifting market: "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.”

Top 10 used car price contraction (all fuel types) | March 2025 vs March 2024 like for like