Retail values rise in April as pricing confidence builds in response to robust demand
2nd May 2025, London – According to the latest data from Auto Trader, despite the political and economic turbulence of recent months, the used car market remains stable, with retail prices rising, vehicles selling at record speeds, and sales volumes increasing. However, with supply complexities persisting, retailers are urged to utilise available data to unlock more margin in their stock.
On a like for like basis, the average retail price of a used car rose 1.5% between March and April. Whilst this trend largely follows seasonal norms,[1] it’s the strongest rate of month-on-month (MoM) growth since April 2023. April also marked the first time in 19 months that retail prices haven’t contracted year-on-year (YoY), with current values flat versus April 2024.
The positive movement is being fuelled by robust levels of consumer demand, particularly within the 5-10 and over 10-year-old vehicle cohorts, where demand is rising at a faster pace than the volume of supply entering the market. As a result, its these age groups that are recording the largest increase in average prices, with 5-10-year-old cars growing 1.5% MoM and 1.1% YoY (£13,866), whilst those aged over a decade surged 3.3% MoM and 1.4% YoY (£6,545).
Highlighting the nuance in the market, however, vehicles aged less than a year old, where the returning level of supply is outpacing the otherwise solid demand, average prices (£33,026) are increasing at a slower rate. In April, prices of nearly new cars increased 1.3% MoM but fell back -4.4% YoY.
Used cars leaving forecourts at record pace
The healthy appetite for used cars more broadly is evident in the speed in which they’re leaving forecourts. Used cars took an average of just 27 days to sell in April, which is a day faster than last year, and the fastest April since Auto Trader began tracking speed of sale[2]. Those cars aged 5-10-years-old are selling even faster; at just 25 days, they’re the current fastest selling age cohort.
As well as strong consumer engagement on Auto Trader throughout April (circa 82.9 million consumer visits), Auto Trader’s retail sales data show the volume of used car sales rose around 1.3% YoY last month despite Easter falling in April this year.
Gap closing on retail and trade values
Trade values recovered at a faster rate following the steep decline in autumn 2023 but have begun to slow again over recent months, particularly within younger cohorts. As well as helping to improve vehicle margins, the rise in retail prices point to greater pricing confidence among retailers; according to Auto Trader the number of used cars being priced above market value has risen from 30% to 33% in April.
Despite rising confidence however, there is still significant margin potential being missed. Auto Trader data indicates there’s currently £25 million being left on the table due to in-demand[3] vehicles being priced below market value. It equates to £2,820 of margin opportunity per retailer and £390 per vehicle.
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 for your forecourt, but price it correctly and confidently to the market.
It’s encouraging that, despite the political and economic turbulence of recent months, the used car market has remained stable throughout April and going into the second quarter of the year. Used cars are leaving forecourts at a record pace, offering a positive outlook for the months ahead. While these indicators are promising, there remains significant margin potential being missed and this is something retailers should closely monitor as we move further into the year.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA)
Top 10 used car price growth (all fuel types) | April 2025 vs April 2024 like-for-like
Top 10 used car price contraction (all fuel types) | April 2025 vs April 2024 like for like
[1] Since 2011 retail prices have risen 1.9% on average in April on a MoM basis.
[2] January 2019
[3] Auto Trader internal data. Stock with a Retail Rating below +61price below 100% price position.
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