Used car market sees further price gains in March as retailer confidence grows
London, 3rd April 2025 –The used car market maintained its positive trajectory in March, with rising prices, healthy demand, and faster selling times contributing to continued market growth, according to the latest data from Auto Trader.
The average used car price rose to £16,915, up 0.1% month-on-month and marking the second consecutive month of price growth. Against seasonal average March price movements of -0.4%, this is an impressive increase.
While overall used car demand grew +1.0% year-on-year – an encouraging indicator of resilient consumer demand – supply increased at a faster rate (+5.7% year-on-year), which has tempered further retail price acceleration.
Nevertheless, used cars are continuing to sell quickly, with an average of 25 days to sell, down two days from February, signalling strong retail engagement. Petrol cars sold in just 24 days, making them the fastest-selling fuel type.
The used electric vehicle (EV) market continues to experience significant shifts. Supply of used EVs surged by +54.7% year-on-year, largely due to ex-lease vehicles returning to the industry, outpacing EV demand growth of +35.9% year-on-year. The growing numbers of electric registrations mean supply of used electric stock is only set to increase.
The imbalance between supply and demand is putting downward pressure on used EV prices (down –1.6% MoM to £25,190), making them a more attractive option for buyers. Prices for petrol and diesel engines rose to £14,849 (up +0.1% month-on-month) and £14,276 (up +0.8% month-on-month) respectively.
Nonetheless, Auto Trader analysis suggests that despite improving pricing strategies, a significant portion of retailers are not fully capitalizing on demand, leading to missed profit opportunities.
Almost all age cohorts of vehicles return to positive YoY price growth this month. Whilst the supply of 3-5 year old vehicles remained constrained, supply of all other segments continued to grow. Despite this, retail prices for 3-5 year old vehicles have now seen price movements of +0.9% year-on-year.
March’s data reinforces the ongoing evolution of the used car market. While price confidence among retailers is growing, the market remains dynamic, particularly with the influx of used EVs. Retailers who leverage real-time data and advanced pricing strategies, pricing their cars ‘retail back’, will be best positioned to optimize margins and maintain a competitive edge in the months ahead.
“As the used car market adapts to shifting supply and demand trends, a data-driven approach will be essential for retailers to navigate the complexities and sustain profitability in the coming months.”
Top 10 used car price growth (all fuel types) | March 2025 vs March 2024 like-for-like
Top 10 used car price contraction (all fuel types) | March 2025 vs March 2024 like for like
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