Used car retail prices climb as dealer confidence rises on strong demand

The used car market continued to show resilience in April, with average retail prices rising by 1.5% month-on-month and sales volumes growing despite economic and political uncertainty, according to new data from Auto Trader.

This represents the strongest monthly growth since April 2023 and marks the first time in 19 months that prices have not contracted year-on-year.

With robust consumer demand - especially for 5-10 year-old and 10+ year-old vehicles - pricing confidence among retailers is building, though significant margin opportunities remain untapped.

Marc Palmer, Auto Trader’s head of strategy and insights, 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.

Retail prices rose by 1.5% month-on-month and, for the first time in over a year, remained flat year-on-year - indicating stabilisation in pricing trends.

The fastest-selling age group was 5-10-year-old vehicles, which took just 25 days on average to sell, outperforming all other age cohorts.

Older vehicles also saw the strongest price growth, with over-10-year-old cars rising 3.3% MoM and 1.4% YoY, while 5-10-year-olds increased by 1.5% MoM and 1.1% YoY. In contrast, nearly new cars - those less than 12 months old - posted slower growth of 1.3% MoM and a YoY decline of 4.4%, as returning supply outpaced demand.

Overall, used cars sold at a record pace, averaging just 27 days on forecourts—the fastest April on record for Auto Trade

Top 3 Rising Models (YoY)

Toyota Land Cruiser – £38,599 (+13.0%)

Hyundai i30 – £8,768 (+7.7%)

Volvo S60 – £12,764 (+7.2%)

Top 3 Declining Models (YoY)

BMW iX – £47,533 (-19.1%)

Nissan ARIYA – £31,440 (-18.9%)

Tesla Model X – £33,111 (-18.5%)

The data also revealed that 33% of stock is now being priced above market value - up from 30% last month - signalling increasing retailer confidence. However, £25 million in potential margin remains unrealised, with in-demand cars still being priced below market benchmarks, equating to £2,820 per retailer or £390 per vehicle.

Commenting, Palmer added: “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.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “It’s encouraging that, despite the political and economic turbulence of recent months, the used car market has remained stable throughout April and going into the second quarter of the year. Used cars are leaving forecourts at a record pace, offering a positive outlook for the months ahead. While these indicators are promising, there remains significant margin potential being missed and this is something retailers should closely monitor as we move further into the year.”