Used car retail market sees first annual price growth in two years
5th September 2025, London – In August, the average price of a used car reached £16,777, representing the first year-on-year (YoY) increase since August 2023. This growth, though modest at 0.4%, highlights the ongoing momentum and underlying health of the used car market. The data, drawn from Autotrader’s Retail Price Index and based on around 800,000 daily observations from across the whole retail market, also shows a month-on-month rise of 0.3%.
It follows a period of four months with flat YoY prices and a longer trend of falling annual values after the record-high COVID era, which saw a peak of 32.2% recorded in April 2022. The current upturn, and wider stability in retail prices, is supported by solid market fundamentals, notably strong consumer demand, which is reflected in the increased engagement on Autotrader. Last month saw around 84.3 million cross platform visits to the platform, which is up 2.1% on last year, and an all-time August record.
Older cars lead price growth, as younger stock face price pressure
Demand is especially strong within the older segments of the used market, where the appetite for cars is rising faster than new supply entering the market. As a result, older cohorts are experiencing the strongest price gains. In August, the average price for 5-10-year-old cars rose by 1.4% YoY, reaching £13,619, while 10-15-year-old cars jumped 6.5% to an average of £6,580. In contrast, used vehicles in younger categories continue to record annual price decreases as levels of supply growth increase more swiftly than demand. Cars less than 12 months old (‘nearly new’) declined by -1.5% in price YoY, while 1-3-year-old models saw a -2% drop.
Sales surge for independents, but franchises find relief in pre-reg slow-down
The robust demand in older, more affordable cars is translating to increased sales for independent dealers, who saw a 3.4% annual rise in August. Franchise retailers, however, experienced a -3.1% decline, largely due to differing stock profiles and supply challenges — especially for 3-5-year-old vehicles, where stock fell nearly -9% YoY in August.
This shortfall in this core segment of the market for franchise businesses is the result of the 3m new cars not sold during the pandemic, initially impacting nearly new and 1-3-year-old cars. With the decline in 3-5-year-old stock now beginning to level off, however, the supply levels will begin to improve over the course of 2026 as the shortfall continues to flow up through the parc.
Tough competition from attractive new car finance offers and consumer incentives, particularly within the EV market, can lower demand and extend selling times of nearly new stock, adding an extra challenge for franchise businesses. However, whilst the volume of nearly new stock has increased slightly this month (up 3.4% YoY), Autotrader’s data indicates pre-registration activity has softened recently, with current levels well below pre-pandemic norms. In fact, year-to-date, pre-registration volumes are back circa -43% on 2019, which was a record year for new car registrations, and based on what Autotrader is tracking, are expected to stay low during the September plate change.
Used EV market continues expansion
Contrary to recent speculation the government’s £650 million Electric Car Grant would have an immediate impact on used electric vehicle (EV) prices, a granular look at Autotrader’s data reveals they remain unaffected, and the burgeoning used EV market more broadly remains in good health. Supply increased by 42.2% year-on-year in August, and demand grew by 31.3%. Whilst supply is outpacing demand, retail prices continue to stabilise because the huge proportional increase in used EV interest relative to the scale of the wider market is comfortably absorbing the slightly larger levels of supply growth. The average used EV price was £25,025 in August, up 0.4% month-on-month, and although down -4.3% year-on-year, it’s an improvement from July’s 6% drop and marks the lowest contraction since January 2023.
“As we’ve seen throughout 2025, the used car market continues to demonstrate real resilience, with strong consumer demand, swift sales, and robust market fundamentals which has led to the first year-on-year price growth in two years. This renewed momentum should inspire confidence among retailers as we move into the latter part of 2025. However, the market remains highly nuanced, with ongoing supply challenges and varying performance across different vehicle segments."
Although franchise businesses are currently feeling the squeeze in the middle of the market, we expect that to begin easing off over the coming months as the post COVID shortfall continues to flow up through the parc. In this evolving landscape, having access to timely, granular data is crucial, to source, price, and market stock effectively and to stay ahead.”
Top 10 used car price growth (all fuel types) | August 2025 vs August 2024 like-for-like
Top 10 used car price contraction (all fuel types) | August 2025 vs August 2024 like for like
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