UK used car market remains stable with seasonal price dips in May
The British used car market showed stability in consumer demand, sales speed, and transaction volumes in May 2025, with average retail prices aligning with seasonal trends, according to Auto Trader's latest market data.
Auto Trader's Retail Price Index, based on 800,000 daily pricing observations, reported the average price of a used car at £16,825 ($22,714).
This marked the second consecutive month of flat prices on a year-on-year (YoY) and like-for-like basis, following more than 18 months of price declines.
Prices softened by 0.7% month-on-month (MoM), consistent with historical seasonal patterns.
Since Auto Trader began tracking retail prices in 2011, May has typically seen a price dip following an April increase, except during the pandemic-affected years of 2020 and 2021.
Consumer demand, measured by searches and advert views on Auto Trader, grew 1% YoY in May, building on a 10% rise in May 2024 and contrasting with a 2% drop in April.
Demand varied significantly by vehicle age. Cars aged five to ten years and over ten years saw robust demand increases of 4.5% and 10.4% YoY, respectively, driving price rises of 1.4% (£13,705) for five-to-ten-year-old and 2.6% (£6,555) for those over a decade old.
Conversely, demand for one- to three-year-old and three- to five-year-old cars fell by 2.4% and 9.1%, respectively.
Used cars sold at an 'impressive' pace, averaging 30 days to sell, matching May 2024 and a day faster than 2023.
The five- to ten-year-old cohort sold quickest at 28 days, while one- to three-year-old cars took 34 days.
Transaction volumes rose approximately 1% YoY in May, following a strong first quarter and a 'solid' April.
Independent retailers saw sales increase by around 4.2% YoY, benefiting from stocking more affordable, older cars.
Franchise businesses, however, faced a 1.8% YoY sales decline, impacted by higher-priced stock profiles, a return of one- to three-year-old cars, limited availability of three- to five-year-old cars, and pressure from new models.
Fuel type trends showed declining demand for used petrol (down 0.5% YoY) and diesel (down 9.7% YoY) cars, while alternatively fuelled vehicles surged.
Hybrids and plug-in hybrids saw demand rise by 16% and 27%, respectively, with used electric vehicles (EVs) leading at a 31% YoY increase, driven by falling prices.
The average used EV price was £24,370, down 7.4% YoY, compared to 0.5% and 2% YoY growth for petrol and diesel cars.
For 3-5-year-old vehicles, EV prices dropped 11.6% to £18,266, making them cheaper than equivalent petrol cars (£18,731).
Auto Trader strategy & insights head Marc Palmersaid: 'Although a slight softening on the strong first quarter of the year, we've seen a flatter but nonetheless robust used car market so far in Q2. Retail prices are stable, demand is healthy, cars are selling at pace, and on our platform, we're seeing huge volumes of highly engaged car buyers.
'For those retailers able to source sufficient quantity and quality of in-demand stock, this is proving to be a strong combination, with overall transactions ahead of where they were last year. The market may be very nuanced, but there are clearly areas of profit potential available, and so I'd urge retailers to make full use of the tools and data we've developed to spot the best opportunities for their forecourts.'
In May 2025, Auto Trader reported that nearly 10,000 retailer sites have utilised its AI-powered Co-Driver tools since their launch to enhance performance.
"UK used car market remains stable with seasonal price dips in May" was originally created and published by Motor Finance Online, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Trump may have to choose: Making trade deals or keeping his car tariffs
President Donald Trump is telling domestic audiences he won't cut his 25 percent tariffs on foreign cars as part of any trade deals he negotiates. But other countries — who collectively send millions of vehicles to the U.S. each year — haven't gotten that message. Trading partners like the EU, Japan and South Korea are laboring under the impression that the auto tariffs, which Trump imposed in April, are still on the table, according to two people familiar with the talks between Trump officials and those countries, granted anonymity to discuss private conversations. If Trump is really unwilling to lower or eliminate his tariffs on foreign cars, it could prove to be a major hurdle to securing meaningful trade deals with some of the country's top trading partners. Japan, South Korea and Germany sold more than $121 billion in cars and car parts in the U.S. in 2024. The White House did not answer when asked if auto tariffs were on the table for negotiations and instead reiterated the goal of the tariffs. 'No president has taken a greater interest in reviving America's once-dominant auto industry than President Trump, and the auto industry is a key focus of the Trump administration's trade and economic policies,' said Kush Desai, a White House spokesperson. 'Discussions with our major trading partners continue, and the Trump administration continues to seek better trade deals for American industries and workers.' A decision to lift the tariffs for more countries, particularly those whose companies compete most fiercely with American carmakers, risks alienating a powerful manufacturing bloc and undercutting a central tenet of Trump's trade agenda — forcing companies to build more products in the U.S. The Trump administration has assured American automakers that when it comes to auto tariffs being used as a bargaining chip, they have 'nothing to worry about,' according to a person familiar with discussions between the administration and Detroit's 'Big Three' auto companies, granted anonymity because of the sensitive nature of the talks. Trump has said a deal to lower the tariff on a small number of British cars, announced last month, was an exception. 'I won't do that deal with cars' for other countries, Trump said when announcing the terms of negotiation with the U.K. on May 8. The British auto brand Rolls-Royce is 'a very special car and it's a very limited number too. It's not one of the monster car companies that makes millions of cars,' he noted. Even that agreement, which lowered the tariff on 100,000 cars, less than 1 percent of total U.S. annual car sales, drew a sharp rebuke from U.S. automakers. 'This hurts American automakers, suppliers, and auto workers,' the American Automotive Policy Council, which represents General Motors, Ford and Stellantis, said at the time, saying they hoped it 'does not set a precedent for future negotiations with Asian and European competitors.' The tension between the two goals — boosting domestic auto production while also negotiating delicate agreements to lower trade barriers — highlights the challenge facing the administration as it races to secure deals with dozens of countries before the president's double-digit 'reciprocal' tariffs are slated to kick back in next month. 'To ease the sting of those tariffs on the auto sectors for Korea and Japan is of course a high priority for them,' said Michael Beeman, a former assistant U.S. trade representative who focused on Japan and South Korea. 'I think for those countries, to be able to declare success from the talks at home, they would expect some sort of consideration." The auto tariffs have already been a sticking point in negotiations with Japan and South Korea, both of which are invested in maintaining a high level of domestic auto manufacturing. Auto exports from South Korea to the U.S. have exploded over the past 20 years, from $8.7 billion in 2005 to $37.3 billion in 2024, according to data collected by the Census Bureau. Japanese Prime Minister Shigeru Ishiba has said publicly that any trade deal with Japan would have to result in lower auto tariffs. Now, as the two countries are on their fifth round of talks, with a planned meeting between Ishiba and Trump at the G7 in Canada in two weekends, both countries are projecting optimism about a deal. "I think we'll also need to address, at a minimum, the auto [Section] 232 tariffs,' said Wendy Cutler, a former negotiator with the U.S. trade representative's office and the vice president at the Asia Society Policy Institute, said when asked what it would take to get a deal with Japan. Cutler said any deal with Japan or South Korea could have a lower tariff for a certain number of vehicles, similar to the deal with the U.K. Or, 'they could also just be very vague and say that the U.S. notes Japan's concern on the auto tariffs, and both sides agree to negotiate possible lowering of the tariffs in this detailed negotiation to follow," she said. Trump has already agreed to lower tariffs on automobiles once. In his first trade agreement since imposing a global 10 percent tariff on nearly every U.S. trading partner and potentially higher rates on more than 60 countries, Trump struck an agreement with the U.K. that would allow the country to ship 100,000 vehicles into the country at a 10 percent tariff — lower than the current 25 percent tariff on automobiles and auto parts. The deal drew condemnation from American automakers, who noted that it meant a lower tariff on cars imported from the U.K. than on North American-made cars that include U.S.-made parts. They expressed concern that lowering tariffs with major auto manufacturing countries like Japan, South Korea and Germany would make it more expensive to build cars with parts from North America — creating an unfair playing field and effectively undercutting the administration's effort to boost domestic auto manufacturing. Vehicles made across the integrated North American supply chain still face a 25 percent tariff on non-U.S. made content, even if the vehicle is compliant with the U.S.-Mexico-Canada trade agreement that Trump negotiated in his first term. The Trump administration has continued to press foreign automakers to move production to the U.S. Last week, Trump met with German automakers, who offered $100 billion in investment in the U.S., according to Commerce Secretary Howard Lutnick. Trump — and Republicans on Capitol Hill — say those commitments are a sign that tariffs are working. "They make BMWs in South Carolina, Volvo. They make Mercedes in Alabama,' Sen. Lindsey Graham (R-S.C.) pointed out during a Senate Appropriations Committee hearing Wednesday. Under Trump, 'They're talking about making the engine now in South Carolina. They're talking about more content in South Carolina.' There has yet to be an uptick in U.S. auto manufacturing, however, a reminder that the investment pledges will take years to fully develop. Auto manufacturing jobs held steady between April and May, though there were 2,240 fewer auto manufacturing jobs in May, compared to 2024, according to the Bureau of Labor Statistics. While welcoming the announcements, the Trump White House has given no indication the investment pledges will convince the president to lower auto tariffs on foreign countries. 'I mean, unless somebody shows me that there's another kind of a car that's comparable to a Rolls-Royce,' Trump said in May, 'and there aren't too many.'
Politico
an hour ago
- Politico
Trump may have to choose: Making trade deals or keeping his car tariffs
President Donald Trump is telling domestic audiences he won't cut his 25 percent tariffs on foreign cars as part of any trade deals he negotiates. But other countries — who collectively send millions of vehicles to the U.S. each year — haven't gotten that message. Trading partners like the EU, Japan and South Korea are laboring under the impression that the auto tariffs, which Trump imposed in April, are still on the table, according to two people familiar with the talks between Trump officials and those countries, granted anonymity to discuss private conversations. If Trump is really unwilling to lower or eliminate his tariffs on foreign cars, it could prove to be a major hurdle to securing meaningful trade deals with some of the country's top trading partners. Japan, South Korea and Germany sold more than $121 billion in cars and car parts in the U.S. in 2024. The White House did not answer when asked if auto tariffs were on the table for negotiations and instead reiterated the goal of the tariffs. 'No president has taken a greater interest in reviving America's once-dominant auto industry than President Trump, and the auto industry is a key focus of the Trump administration's trade and economic policies,' said Kush Desai, a White House spokesperson. 'Discussions with our major trading partners continue, and the Trump administration continues to seek better trade deals for American industries and workers.' A decision to lift the tariffs for more countries, particularly those whose companies compete most fiercely with American carmakers, risks alienating a powerful manufacturing bloc and undercutting a central tenet of Trump's trade agenda — forcing companies to build more products in the U.S. The Trump administration has assured American automakers that when it comes to auto tariffs being used as a bargaining chip, they have 'nothing to worry about,' according to a person familiar with discussions between the administration and Detroit's 'Big Three' auto companies, granted anonymity because of the sensitive nature of the talks. Trump has said a deal to lower the tariff on a small number of British cars, announced last month, was an exception. 'I won't do that deal with cars' for other countries, Trump said when announcing the terms of negotiation with the U.K. on May 8. The British auto brand Rolls-Royce is 'a very special car and it's a very limited number too. It's not one of the monster car companies that makes millions of cars,' he noted. Even that agreement, which lowered the tariff on 100,000 cars, less than 1 percent of total U.S. annual car sales, drew a sharp rebuke from U.S. automakers. 'This hurts American automakers, suppliers, and auto workers,' the American Automotive Policy Council, which represents General Motors, Ford and Stellantis, said at the time, saying they hoped it 'does not set a precedent for future negotiations with Asian and European competitors.' The tension between the two goals — boosting domestic auto production while also negotiating delicate agreements to lower trade barriers — highlights the challenge facing the administration as it races to secure deals with dozens of countries before the president's double-digit 'reciprocal' tariffs are slated to kick back in next month. 'To ease the sting of those tariffs on the auto sectors for Korea and Japan is of course a high priority for them,' said Michael Beeman, a former assistant U.S. trade representative who focused on Japan and South Korea. 'I think for those countries, to be able to declare success from the talks at home, they would expect some sort of consideration.' The auto tariffs have already been a sticking point in negotiations with Japan and South Korea, both of which are invested in maintaining a high level of domestic auto manufacturing. Auto exports from South Korea to the U.S. have exploded over the past 20 years, from $8.7 billion in 2005 to $37.3 billion in 2024, according to data collected by the Census Bureau. Japanese Prime Minister Shigeru Ishiba has said publicly that any trade deal with Japan would have to result in lower auto tariffs. Now, as the two countries are on their fifth round of talks, with a planned meeting between Ishiba and Trump at the G7 in Canada in two weekends, both countries are projecting optimism about a deal. 'I think we'll also need to address, at a minimum, the auto [Section] 232 tariffs,' said Wendy Cutler, a former negotiator with the U.S. trade representative's office and the vice president at the Asia Society Policy Institute, said when asked what it would take to get a deal with Japan. Cutler said any deal with Japan or South Korea could have a lower tariff for a certain number of vehicles, similar to the deal with the U.K. Or, 'they could also just be very vague and say that the U.S. notes Japan's concern on the auto tariffs, and both sides agree to negotiate possible lowering of the tariffs in this detailed negotiation to follow,' she said. Trump has already agreed to lower tariffs on automobiles once. In his first trade agreement since imposing a global 10 percent tariff on nearly every U.S. trading partner and potentially higher rates on more than 60 countries, Trump struck an agreement with the U.K. that would allow the country to ship 100,000 vehicles into the country at a 10 percent tariff — lower than the current 25 percent tariff on automobiles and auto parts. The deal drew condemnation from American automakers, who noted that it meant a lower tariff on cars imported from the U.K. than on North American-made cars that include U.S.-made parts. They expressed concern that lowering tariffs with major auto manufacturing countries like Japan, South Korea and Germany would make it more expensive to build cars with parts from North America — creating an unfair playing field and effectively undercutting the administration's effort to boost domestic auto manufacturing. Vehicles made across the integrated North American supply chain still face a 25 percent tariff on non-U.S. made content, even if the vehicle is compliant with the U.S.-Mexico-Canada trade agreement that Trump negotiated in his first term. The Trump administration has continued to press foreign automakers to move production to the U.S. Last week, Trump met with German automakers, who offered $100 billion in investment in the U.S., according to Commerce Secretary Howard Lutnick. Trump — and Republicans on Capitol Hill — say those commitments are a sign that tariffs are working. 'They make BMWs in South Carolina, Volvo. They make Mercedes in Alabama,' Sen. Lindsey Graham (R-S.C.) pointed out during a Senate Appropriations Committee hearing Wednesday. Under Trump, 'They're talking about making the engine now in South Carolina. They're talking about more content in South Carolina.' There has yet to be an uptick in U.S. auto manufacturing, however, a reminder that the investment pledges will take years to fully develop. Auto manufacturing jobs held steady between April and May, though there were 2,240 fewer auto manufacturing jobs in May, compared to 2024, according to the Bureau of Labor Statistics. While welcoming the announcements, the Trump White House has given no indication the investment pledges will convince the president to lower auto tariffs on foreign countries. 'I mean, unless somebody shows me that there's another kind of a car that's comparable to a Rolls-Royce,' Trump said in May, 'and there aren't too many.'
Yahoo
2 hours ago
- Yahoo
Nvidia CEO on the UK: ‘I'm going to invest here'
There was no shortage of praise between UK Prime Minister Keir Starmer and Jensen Huang, CEO of semiconductor giant Nvidia, during the opening panel of London Tech Week. Huang said it was 'vital' to invest in the UK, where, in his view, the country's research culture is one of its biggest assets. The leader of the world's most valuable company said the UK is in a 'goldilocks circumstance', given its access to a rich AI community and its position as the third-largest AI venture capital investor after the US and China. The US CEO said the biggest factor holding the UK back was its lack of infrastructure, but he praised an earlier announcement from Starmer that the government would invest an extra £1bn ($1.4bn) to scale up the country's computing capability by a factor of 20. Starmer was pleased to hear Huang's optimism, saying that Nvidia's interest in the UK was 'a vote of confidence'. The PM also announced in his opening keynote speech that the government would launch an initiative to train 7.5 million AI workers by 2030 and invest £187m in tech education. Huang said Nvidia was ready to invest in the UK by launching an AI lab to help 'start off the AI ecosystem and infrastructure'. Ahead of the CEO's appearance with Starmer, Nvidia announced several partnerships with the UK. Nscale, a British cloud computing provider, announced it would develop AI infrastructure with 10,000 Nvidia Blackwell graphics processing units by 2026. The UK's Financial Conduct Authority also launched a 'supercharged sandbox' with Nvidia, allowing banks and other organisations to experiment with AI products. Starmer's growth-focused government has been vocal about the role AI will play in the country's future, reflected in the AI Opportunities Action Plan, published in January. While he acknowledged public fears about the onslaught of AI, particularly regarding job displacement, the PM said every part of society could benefit. 'By the end of this parliament we should be able to look every parent in the eye in every region in Britain and say, 'look what technology can deliver for you',' Starmer said. Huang reflected this optimism, describing AI as "the great equaliser", predicting every industry in the UK would eventually be a tech industry. He added that the chatbot aspect of large language models democratised technology, because there is no need to know a more complicated coding language anymore. "The way you programme AI is like the way you programme a person," he said. "Nvidia CEO on the UK: 'I'm going to invest here' " was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
