Demand for used cars remains robust
Demand for used cars in the three and four-year-old bracket is outstripping supply, according to the latest Indicata Market Watch report.
It found that vehicles in this age bracket account for nearly 26% of all used car sales but make up just 22% of stock.
In contrast, cars under two years old account for 28% of stock but generate only 25% of sales and cars aged five years and over contribute 49.2% of sales and make up 48.9% of stock.
Dean Merritt, Indicata UK’s national retail strategy manager, said: “Three- to four-year-old vehicles appear to have found the ideal balance between desirability and value.
“Buyers can access contemporary safety features, technology and efficiency benefits while avoiding the higher prices associated with nearly new vehicles.”
Petrol
The data also found that demand for petrol remains strong with 43.4% of all used car sales, down from 48.4% in July 2024.
Merritt added: “Despite being most affected by the rise in the sales of used EVs, petrol cars are seen as a safe long-term bet for used car buyers. Used volumes will continue to fall but prices remain steady as demand is very consistent.”
