Used car market gains momentum in July as consumer confidence & robust demand drive positive outlook
6th August 2025, London – The UK’s used car market is showing renewed strength and stability as it enters the latter half of 2025, according to the latest Autotrader data. Consumer confidence is robust, cars are selling at near record speed, and prices remain stable across segments, and with positive supply and demand dynamics, the market is well positioned for a successful H2.
Based on circa 800,000 pricing observations across the whole retail market, the average price of a used car was £16,786 in July, which is flat[1] on both a month-on-month (MoM) and a year-on-year (YoY) basis. It’s the fourth consecutive month prices have been flat YoY, following 19 months of contraction, and reflects positive underlying market dynamics. Indeed, Autotrader’s Market Health metric[2] recorded its first upturn since January; up 1% on the very robust 8% growth recorded in July 2024. It’s been fuelled by the slowing of the overall rate of supply growth (+1.1% YoY) combined with robust levels of demand, which grew 2% YoY in July, on top of last year’s significant 10% increase.
This strength in demand is helping to fuel faster vehicle turnover: on average, used cars were sold every 29 days in July, one day quicker than last year, and three days quicker than July 2023 - a clear indicator of heightened used car appetite.
Autotrader’s car buyer research also indicates consumer confidence remains stable, with nearly half (44%) of 1,000 consumers surveyed in July feeling ‘much more’ confident in their ability to afford their next car than they were last year. Separate Autotrader research of over 2,000 people also revealed that c.70% are looking to purchase within the next six months. This is reflected in the very strong levels of engagement on Autotrader, which in July saw circa 85 million cross platform visits, which is up 5.7% on last year, and marks the largest July audience on record. It follows similar milestones in June and May.
Confident market growth, but retailer disparity persists
Critically, this robust demand and consumer confidence is translating into used car sales, with Autotrader’s data showing that the market rose around 3.3% YoY in July. However, due to differing stock profiles and supply challenges in core market segments, independent retailers saw a 6.1% sales rise, while franchise retailers stayed flat at 0.1%.
Indeed, the supply of 3-5-year-old cars, crucial for franchises, has dropped sharply since the pandemic and its related supply chain effects that lasted until mid 2023, falling from 4.8 million in 2019 to a projected 2.9 million by the end of 2025.
Independent retailers have been less affected by these supply issues and have benefited from rising consumer demand for older, more affordable cars. Interest in 5-10-year-old models climbed 3% year-on-year, and cars over a decade saw demand jump 8.6%, reflecting shifting buyer preferences and market adaptation.
“The combination of swift sales, increasing site visits, and stable pricing underscores a dynamic and resilient sector, which should provide confidence for retailers as the market heads into the remainder of 2025. However, there remain significant nuances and challenges in the market around supply, which is making the job of finding profitable cars increasingly more competitive. Using the data and insights available to help source and price new stock has never been more important, particularly where traditional stock profiles have been impacted.”
Used EVs ‘surge’
Looking at the data at a more granular level, reveals the maturing used EV market continues its rapid growth, with overall supply soaring 42.4% YoY (up from 38.1% in June), and demand climbing 37.8% YoY (up from 28.6%). With supply levels only just outpacing the otherwise very strong levels of consumer demand, retail prices are continuing to stabilise: the average price of a used EV was £24,727 in July, which marked a 0.4% MoM increase, the only fuel type to record growth last month. Although on a YoY basis, prices softened -6%, it’s up from -7.6% recorded in June, and the lowest level of contraction since January 2023.
As well as outpacing the wider market in terms of price growth, used EVs were also the joint fastest selling fuel type in July taking just 28 days to sell (along with petrol). It marks a significant acceleration on the 32 days recorded in June, which made it the then slowest selling fuel type. This is underpinned by the positive response to the government’s £650m Electric Car Grant, which also saw a 107% week-on-week spike in new EV interest of cars under the £37,000 threshold following the announcement. It suggests there could well be a positive flow through of demand for EVs more generally, including used models, thanks to this initiative.
Top 10 used car price growth (all fuel types) | July 2025 vs July 2024 like-for-like
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