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UK's Used Car Market Remains Strong Amid Seasonal Trends And High Demand
In August, the average price of a used car was £16,316, reflecting a 9.2% year-on-year decrease and a slight 0.1% month-on-month decline. Despite this, prices for 1-5-year-old cars rose by 0.2% month-on-month due to strong demand and limited supply. Used cars sold faster than last year, taking just 28 days on average to leave forecourts.
Auto Trader's latest data reveals that retail prices in August outperformed seasonal norms, driven by robust consumer demand in the used car market. Transactions increased by approximately 3% year-on-year despite the distraction of the Olympics. Prices dropped marginally by 0.1% month-on-month, much better than the typical -0.5% decline seen in Augusts before the pandemic.
The imbalance between supply and demand is influencing prices. The volume of used cars advertised fell by 5.3% year-on-year in August, marking the fifth consecutive month of decline and the steepest drop since July last year. However, consumer demand remained strong, with Auto Trader data showing a 7.3% year-on-year increase in August.
This combination of reduced supply and high demand is stabilising retail prices and contributing to a profitable used car market. Auto Trader's Market Health metric, which assesses supply and demand dynamics, rose from 8.2% in July to 13.3% year-on-year in August.
Demand for used petrol cars increased by 7.4%, while supply contracted at the same rate, leading to a robust 15.9% rise in Market Health for these vehicles and an average price of £14,681. In contrast, demand for used electric vehicles (EVs) surged by 49% year-on-year, but supply also rose significantly by 45.3%, resulting in a modest Market Health increase of 2.3%. EV prices softened slightly by -0.3% month-on-month to £26,736.
A closer look at the data shows that consumer interest in 3-5-year-old electric cars grew by an impressive 132.3% year-on-year in August. Although supply surged by 157%, high demand helped lift average prices by 0.1% month-on-month to £18,846, marking the first price rise for this segment in over two years.
Insights from Industry Experts
Richard Walker, Auto Trader’s Data & Insights Director, commented: "We’re well into the second half of the year now, and it’s very reassuring to see the used car market continue to maintain its momentum." He noted that despite distractions like the Olympics and Euros, consumer appetite for used cars remains strong.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), added: "As summer draws to a close, the underlying health of the used car market continues to show positive signs with robust consumer demand and used cars selling faster than when compared to August last year."
Top Performers and Decliners
tbody >| Rank | Make | Model | Aug '24 Average Asking Price | Price Change (YoY) | Price Change (MoM) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Porsche Cayman | £31,762 | 2.3% | 2.3% | |||||||||||||
| 2 | Suzuki Jimny | £11,511 | 1.3% | 3.1% | |||||||||||||
| 3 | BMW M5 | £41,245 | 1.3% | ||||||||||||||
| Kia Picanto | £8,671 | -0.2 % | 0.5 % 5 | Alfa Romeo Giulia | £26,328 | -0.4 % | 2.5 % 6 | Hyundai i10 | £7,976 | -0.5 % | -0.4 % | 7 | Volkswagen up! | £7,988 | -1.3 % | -0.3 % |
Top Used Car Price Contractions h2 >
| Rank th > | Make th > | Model th > | July '24 Average Asking Price th > | Price Change(YoY) th > | Price Change(MoM) th > |
|---|---|---|---|---|---|
| 10 t d>Nissan Leaf-22.-1.-23.-23.-23.-23.-23.-23.-23.-23.-23.-23.-23.-23.-23.-23.-23.The Auto Trader Retail Price Index is published monthly and provides an overview of price trends based on data from around 800000 vehicles daily.Auto Trader Group plc is the UK’s largest automotive platform listed on the London Stock Exchange since March 2015.The company aims to drive change responsibly while promoting environmentally friendly vehicle choices.Auto Trader's marketplace is built on industry-leading technology and data platforms. |
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