Used car market records strongest price growth in three years as robust demand drives faster sales
The used car market remained in robust health in May, with strong consumer demand, cars selling quickly, and retail prices rising. According to Autotrader's latest AI-powered Retail Price Index, the average price of a used car was £17,306 last month, which on a year-on-year (YoY) and like-for-like basis, represents a 0.7% increase - the strongest rate of growth in nearly three years.
The positive performance is underpinned by strong market dynamics, with Autotrader’s data indicating levels of consumer demand outweighing a slight softening in levels of supply in the market, which fell 6.6% YoY. The robustness of this demand is evidenced by Autotrader's onsite performance; in May, cross-platform visits reached 83.7 million, while the company also recorded its highest month on record for app engagement, with 3.7 million monthly active users (MAUs) across its mobile apps.
Crucially, this high-intent activity is translating into a fast-moving trading environment, accelerating the speed of sale for the average used car to just 29 days—two days quicker than in May 2025.
Used EVs become the standout segment as prices stabilise
While the overall market remains stable, Autotrader’s data reveals several standout segments, not least used electric vehicles (EVs), which, driven by higher fuel prices and a growing pool of more affordable stock, saw demand on Autotrader surge 36.4% YoY in May. This increase in consumer appetite for electric is now outpacing supply in the market, which last month fell by 11.2%YoY.
As a result, used EVs are selling faster than ever, taking an average of just 24 days to sell - 12 days quicker than the same period last year and a full five days faster than the average used petrol car. Crucially for retailers, this shift in supply and demand dynamics has stabilised EV pricing. Indeed, the overbalance in demand saw YoY pricing flatten (0.0%) in May, marking the first time YoY EV pricing has been non-negative since December 2022, ending 40 consecutive months of decline.
The 3-5-year-old EV segment is proving particularly important, attracting 48% of all used EV enquiries and representing the fastest-selling age bracket. Such is the demand for electric, one in five cars on UK roads under five years old are expected to be electric by the end of this year.
Margin opportunity in older stock
Beyond electrification, older segments of the retail market continue to present a clear margin opportunity for retailers. This month's overall market price growth was largely driven by older stock, with pricing increasing for all cohorts older than three years. Most notably, the 10-15-year-old segment rose 8.3% YoY, reaching a record average price of £7,213.
May’s data reinforces the resilience of the used car market, with car buyers evidently shrugging off broader concerns about the economy. While demand has normalised slightly year-on-year, it continues to outpace supply, supporting both pricing and faster stock turn for retailers.
“Cost factors are nonetheless coming through strongly in terms of the type of car consumers are increasingly looking at. Electric vehicles are the standout story this month, proving hotter than ever as buyers react to the perceptions of costly petrol and diesel motoring. As demand accelerates and supply tightens, EVs are selling at record speeds and, importantly for retailers, prices have now stabilised following a prolonged period of decline.
“We’re also seeing continued strength in older vehicles, where constrained supply and sustained demand are creating clear margin opportunities. Overall, the fundamentals remain firmly in retailers’ favour, with well-priced stock continuing to sell quickly.”
Top 10 used car price growth (all fuel types) | May 2026 vs May 2025 like-for-like
Top 10 used car price contraction (all fuel types) | May 2026 vs May 2025 like for like
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