Used automotive market beneficial properties momentum as sturdy demand drives constructive outlook

The used automotive market is displaying clear indicators of renewed power and resilience, in keeping with contemporary information from AutoTrader, signalling a constructive trajectory because the sector heads into the second half of the yr.

Buoyed by sturdy shopper confidence, secure costs, and quick turnover, July marked a major turning level, with each provide and demand dynamics aligning to create a wholesome and aggressive market atmosphere.

Primarily based on round 800,000 retail market pricing observations, the common value of a used automotive in July was £16,786 – flat on each a month-on-month and year-on-year foundation. This marks the fourth consecutive month of YoY value stability, following 19 months of decline, and highlights the sector’s return to a extra balanced footing.

AutoTrader’s Market Well being metric additionally mirrored this power, posting its first upturn since January. The metric rose 1% YoY, constructing on an already stable 8% development in July 2024. This enchancment has been pushed by a slowing provide development fee of +1.1% YoY, which mixed with 2% development in demand, has offered a fertile panorama for restoration.

A key signal of this momentum is the quickening tempo of car turnover. In July, used vehicles had been bought on common each 29 days, which is at some point sooner than July 2024, and three days faster than July 2023 – a transparent indicator of rising shopper urge for food.

AutoTrader’s newest shopper analysis helps this pattern. Almost 44% of 1,000 respondents surveyed in July stated they felt “rather more” assured about affording their subsequent automotive in contrast with final yr. Moreover, in a separate research of over 2,000 folks, roughly 70% stated they intend to buy a automobile throughout the subsequent six months.

This rising intent is mirrored in digital engagement: AutoTrader recorded round 85 million cross-platform visits in July, up 5.7% YoY and marking its greatest July viewers on file. This follows related record-breaking numbers in each Could and June, reinforcing the market’s sturdy ahead momentum.

This confidence is translating immediately into gross sales. AutoTrader information reveals the used automotive market grew 3.3% YoY in July. Nevertheless, efficiency differed between retailer sorts. Impartial retailers noticed a 6.1% enhance in gross sales, whereas franchise retailers remained flat at 0.1%.

The divergence is partly resulting from automobile availability. The provision of three–5-year-old vehicles, a key section for franchised sellers, has dropped sharply because the pandemic. Provide chain disruptions that persevered till mid-2023 have taken a long-lasting toll, with quantity falling from 4.8 million in 2019 to a projected 2.9 million by the top of 2025.

In distinction, unbiased retailers have been much less uncovered to those provide shortages. They’ve benefitted from elevated demand for older, extra inexpensive automobiles, with curiosity in 5–10-year-old vehicles up 3% YoY, and demand for vehicles over 10 years outdated climbing 8.6%.

Commenting on the information, Marc Palmer, head of technique and insights at AutoTrader, stated: “The mix of swift gross sales, growing web site visits, and secure pricing underscores a dynamic and resilient sector, which ought to present confidence for retailers because the market heads into the rest of 2025.

“Nevertheless, there stay important nuances and challenges available in the market round provide, which is making the job of discovering worthwhile vehicles more and more extra aggressive. Utilizing the information and insights out there to assist supply and value new inventory has by no means been extra vital, significantly the place conventional inventory profiles have been impacted.”

One of the notable development areas continues for use electrical automobiles (EVs). Provide surged 42.4% YoY in July, up from 38.1% in June, whereas demand grew 37.8%, accelerating from 28.6% the earlier month. With provide solely simply outpacing demand, used EV costs are stabilising.

The common value of a used EV was £24,727 in July, up 0.4% month-on-month – making EVs the one gas kind to see value development within the month. Though EV costs stay down 6% YoY, this marks an enchancment from the -7.6% decline recorded in June, and is the bottom degree of annual contraction since January 2023.

By way of turnover, used EVs had been among the many fastest-selling gas sorts, taking simply 28 days to promote – on a par with petrol automobiles. That’s a pointy enchancment from the 32 days in June, when EVs had been the slowest-selling section.

This acceleration is partly pushed by shopper response to the federal government’s new £650 million Electrical Automotive Grant. Following its announcement, AutoTrader recorded a 107% week-on-week spike in curiosity for EVs priced below £37,000, suggesting that demand within the used EV market may benefit from a long-lasting halo impact.