The latest on used car prices

The used car market continues to perform well, with our latest analysis of the used car market showing demand on the rise and pricing remaining robust.

Our analysis of used car prices shows that the average price of a used car last month was £16,408, down -7.4% year-on-year (YoY) on a like-for-like basis but the lowest annual decline since December 2023.

 Month-on-month, the market has risen 1% which is up from October 2023 (-0.2%) but not quite back to pre-pandemic averages which hovered around the 1.9% mark.

The sustained levels of consumer demand are fuelling the market performance, combined with the ongoing constraints in used car supply. In fact, whilst YoY supply was down -5.6% in October, our data showed that demand on its platform had risen strongly for the fourth consecutive month, increasing 9.9% YoY.

Our market health indicator increased by 16.4% YoY as demand outpaced supply and cars sold faster, taking on average 29 days to leave forecourts in October, three days quicker than the same month last year. Due to these healthy market dynamics, retailers are pricing more confidently than at this time last year, when they were spooked into bigger reductions by price cuts in the wholesale market as some trade buyers were reluctant to source stock.

The October figures show the average price of a used petrol car showing the smallest decline, down -6.4% YoY at £14,699, diesels down -7.1% at £14,066 and electric vehicles priced 13.4% lower at £26,819. The typical plug-in hybrid is down 12.5% year-on-year at £30,834. These prior year comparisons are all negative given the trade price induced fall in retail values seen last winter.

Used electric cars performed well in October too with used BEV prices rising (2.1%) MoM for the first time in two years, likely due to sustained demand throughout the year, renewing retailer confidence in the second-hand electric market. Speed of sale for the 3-5 year old electric segment sits at an impressive 19 days, one day faster than September and the fastest across all segments.