6 days ago
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.
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