Used car prices hold firm in May
Used car prices remained unchanged for the second month in a row in May, according to Auto Trader’s latest Retail Price Index.
It found that the average price of a used car on the Auto Trader platform was £16,825, which is a fall of 0.7% month-on-month.
Consumer interest remained strong with a two per cent annual increase in visits to the platform. However, it found that demand for older vehicles was especially strong, with interest in 5-10-year-old cars and for vehicles older than 10 years up by 4.5% and 10.4% year-on-year.
This drove a 1.4% price rise in the 5-10-year segment to £13,705 and 2.6% price rise in the 10-year category to £6,555.
Conversely, demand fell for one to three-year-old cars by 2.4% and for three to five-year-old cars by 9.1%.
EV demand
In terms of fuel types, petrol and diesel cars saw declines of 0.5% and 9.7% respectively, while demand for hybrid and plug-in hybrids rose by 16% and 27%. Most notably, used electric vehicle demand soared 31% year-on-year, driven by a 7.4% fall in average prices.
Marc Palmer, Auto Trader’s head of strategy and insights, said: “Although Quarter Two has seen a slight softening from a strong start to the year, the used car market remains in solid shape. With stable prices, consistent demand, and fast stock turn, retailers who can source the right vehicles – particularly older models – are well positioned to thrive.
“The market is nuanced, but the opportunities are there for those leveraging data and insights to target high-potential segments.”
