Used car prices continue upward trajectory as resilient market remains 'well-insulated' ahead of autumn budget
7th November 2025, London – Contrary to speculation around the impact of the Autumn Budget later this month, analysis from Autotrader suggests the automotive retail market will remain largely unaffected. Although the UK’s economic indicators remain flat, consumer confidence and engagement on the UK’s largest automotive platform strengthened in October, helping to maintain a robust and resilient used car market, with retail prices increasing, and cars continuing to sell at the rapid pace seen throughout 2025.
According to data from Autotrader’s Retail Price Index, which is based on around 800,000 daily AI driven observations across the whole retail market, the average price of a used car reached £17,087 in October, which is a 0.4% increase on a year-on-year (YoY) and like-for-like basis. Highlighting the underlying strength of the used car market, it marks the third consecutive month of YoY growth after two years of price contractions.
Autotrader’s data also shows retail prices grew on a month-on-month (MoM) basis, rising on average 0.7% versus September.
Price growth is being fuelled, in part, by robust levels of consumer demand and car buying engagement, as reflected in the circa 81.1 million cross platform visits to Autotrader in October (up 3% MoM) as well as the rapid pace in which used cars are selling. Last month it took 28 days for the average used car to sell, which is one day faster than the same period last year, and four days ahead of 2023.
Used car market remains well-insulated from Budget
More broadly, consumer confidence strengthened1 in October, with optimism around personal finances and major purchases on the rise. And as reflected in the robust demand for used cars, vehicle ownership remains a priority for UK households—in fact, nine in 10 consumers consider it essential, and motoring spend is typically the last area to see reductions, even as budgets tighten. In fact, Autotrader’s research2 shows that whilst nearly 40% of used car owners intend to cut back on eating out, 30% on clothing, 29% on travel, and 24% on technology, just 16% plan on spending less on their motoring expenses.
Despite the uncertainty and growing speculation around the Autumn Budget therefore, these strong fundamentals will keep the overall used car market insulated from any potential tax rises as hinted by the Chancellor this week. Importantly, Autotrader’s analysis shows that previous Autumn Budget announcements have had minimal impact on used car buying activity, with engagement on Autotrader remaining strong and only easing during the run-up to Christmas.
However, whilst the overall used car market is hugely resilient, the Government’s proposed pay per mile tax on electric vehicles (EV) is likely to reverberate across both new and used cars. Over recent months, demand for used EVs has rocketed (up circa 30% YoY3 in October), particularly within the more affordable 3-5-year-old segment (up circa 40% YoY); drivers respond to incentives and anything that puts up running costs risks slowing the huge momentum achieved in both markets.
Strong Q4 engagement offers Q1 opportunity
Although Q4 traditionally sees a softening in transactions, Autotrader’s data shows that consumer engagement remains strong throughout the period, as Q1’s buyers use this time to research their next purchase. In fact, Autotrader’s analysis reveals that buyers typically spend circa 88 days researching before making a decision, meaning that those browsing during the closing months of 2025 are likely to return ready to buy in the early new year.
Although some may hold off committing to buying a more expensive brand-new car until after the Chancellor’s laid out her plans, previous Budget announcements have had little impact on used car buying activity. Car ownership continues to be a protected priority, and motoring spend is typically the last area to see reductions. With the potential exception of EVs where some doubt may have been created with the recent pay per mile news, we can expect sustained engagement from used car buyers, regardless of broader budgetary changes.
“Despite a natural slowdown in transactions, we continue to see very robust consumer engagement during the closing months of the year. For retailers, this underscores the importance of maintaining a strong presence and ensuring stock is visible and well-presented online, so they’re well placed to capture this pent-up demand and start the new year with real sales momentum behind them.”
Top 10 used car price growth (all fuel types) | October 2025 vs October 2024 like-for-like
Top 10 used car price contraction (all fuel types) | October 2025 vs October 2024 like for like
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