Used car prices driven up by customer demand
Auto Trader analysis has found that average used car prices rose 1.5% on a like-for-like basis from March to April.
This represents the strongest rate of month-on-month growth since April 2023.
Meanwhile, April also marked the first time in 19 months that retail prices haven’t contracted year-on-year, with current values flat versus April 2024.
The positive movement is being fuelled by robust levels of consumer demand for cars older than five years old, where demand is outstripping supply.
As a result, values of cars aged five to 10-years-old rose 1.5% month-on-month and 1.-1 year-on-year, while those aged over 10 years have risen 3.3% month-on-month and 1.4% year-on-year.
Customer demand
Meanwhile, used cars took an average of just 27 days to sell in April, which is a day faster than last year.
Marc Palmer, 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.
“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 but price it correctly and confidently to the market.”
