The UK used car market is performing strongly despite supply challenges and economic uncertainty.
According to Auto Trader, demand, speed of sale, prices, and sales volumes are all strong as the UK used car market enters the final quarter of the year.
This is despite sourcing challenges exacerbated by a growth in fleet sales and a general lack of confidence in the UK economy.
Its data reported that the average price of a used car reached £17,036 last month, which is up 0.6% year-on-year, with cars selling in an average of 30 days.
Meanwhile, consumer demand and confidence remains high, with 90% of consumers surveyed saying they are as confident or more confident in their ability to buy a car this year compared to last year, with 74% planning to make a purchase in the next six months.
Despite this trend though, Auto Trader believes retailers are missing out on £26.7m in potential revenues by underpricing more than 63,000 models on its platform.
Remarkable resilience
Marc Palmer, head of strategy and insights, said: “The used car market is showing remarkable resilience and is carrying some real momentum as we enter the closing quarter of 2025. Prices are growing, demand is robust, and cars are selling at pace, which should give retailers confidence for the months ahead.
“But, while the appetite for used cars is strong, sourcing remains the industry’s Achilles’ heel, especially for those reliant on younger stock. The growth in fleet sales over recent years means fewer cars are returning to the market via traditional routes, putting the squeeze on available supply and intensifying competition for the best cars.
“To stay ahead, retailers must let data steer their strategy, identifying new sourcing opportunities and maximising every margin. In short: demand is robust, but in today’s market, smart data-driven decisions will determine the best performing retailers.”
