Robust demand fuels used car price momentum but fleet sales drives retailer sourcing squeeze
3rd. October 2025, London – Despite growing political and economic uncertainty, the used car market is entering the closing quarter of 2025 in good health, with demand, speed of sale, retail prices and overall transactions in a robust position, buoyed by stable car buying confidence. However, according to the latest data from Autotrader, the UK’s largest automotive technology platform, sourcing challenges have accelerated due to the growth in fleet sales, reducing the volume of stock re-marketed via traditional routes.
In September, the average price of a used car reached £17,036, which is a 0.6% increase on a year-on-year (YoY) and like-for-like basis. Highlighting the underlying strength of the used car market, it marks the second consecutive month of YoY growth after two years of price contractions.
The data, drawn from Autotrader’s Retail Price Index and based on around 800,000 daily AI driven observations from across the whole retail market, also shows a slight softening on a month-on-month (MoM) basis, with prices down -0.1%. However, this is in line with seasonal norms: on average, used prices drop around -0.3% in September1.
Price growth is being fuelled, in part, by robust levels of consumer demand and car buying engagement, as reflected in the circa 79 million cross platform visits to Autotrader last month as well as the near record pace cars are selling. In September cars took around just 30 days to sell, in line with recent trends.
Demand is being maintained by strong car buying confidence: Autotrader’s car buyer research indicates nearly half (45%) of 1,000 consumers surveyed in September feel ‘much more’ confident in their ability to afford their next car than they were last year, rising from less than a third (32%) in 2024. In total, 9 in 10 people are as confident or more confident, whilst 74%2 plan to buy in the next six months.
The growth in retail prices is also a reflection of growing confidence among retailers to price their stock in line with the market. In fact, Autotrader’s data shows that retail prices have been more stable in 2025 than in previous years, with all fuel segments of the market seeing YoY pricing strengthen over recent months. Used electric cars, for example, have seen average prices improve their position by around 4 percentage points since June3.
Despite rising confidence however, there is still significant margin potential being missed due to in-demand vehicles being priced below market value. In fact, there are currently 63,000 used cars priced below their optimum retail value on Autotrader, equating to an additional £26.7 million margin opportunity - more than £3,000 per retailer4.
Overall market rises, but fleet sales tighten sourcing squeeze
Demand is also translating into overall sales growth, with Autotrader’s data indicating the market increased 1% YoY in September. However, it’s being driven by independent retailers (3% YoY) which have been less impacted by the ongoing shortfall of 3-5-year-old cars (-11% YoY), a core segment for franchise businesses (-2% YoY).
Initially driven by the pandemic's 3mn new car shortfall, the younger car supply challenge is now being compounded by significant changes to new car sales channels. 60% is now the established level for the fleet mix, with fewer cars re-entering the market via traditional ‘franchise friendly’ routes, such as part exchanges or PCP upgrades or renewals, even during key plate change months. Whilst franchise retailers have compensated for the shortfall by increasing their share of 1-3-year-old cars, so too have independent businesses, taking advantage of more ex-fleet stock remarketed through auctions and buying platforms.
“The used car market is showing remarkable resilience and is carrying some real momentum as we enter the closing quarter of 2025. Prices are growing, demand is robust, and cars are selling at pace, which should give retailers confidence for the months ahead. But, while the appetite for used cars is strong, sourcing remains the industry’s Achilles’ heel—especially for those reliant on younger stock. The growth in fleet sales over recent years means fewer cars are returning to the market via traditional routes, putting the squeeze on available supply and intensifying competition for the best cars.
To stay ahead, retailers must let data steer their strategy, identifying new sourcing opportunities and maximising every margin. In short: demand is robust, but in today’s market, smart data-driven decisions will determine the best performing retailers.”
Top 10 used car price growth (all fuel types) | September 2025 vs September 2024 like-for-like
Top 10 used car price contraction (all fuel types) | September 2025 vs September 2024 like for like
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