- The average price of a used car was £16,703 in April, down -9.3% year-on-year, but up 1.1% month-on-month in line with seasonal norms.
- Robust consumer demand fuelling uptick in used car sales, with transactions up circa 6.3% year-on-year in April.
- Younger electric vehicles outperforming wider market, with average price of 1–3-year-old models rising 2.5% month-on-month.
Wednesday 1st May 2024, London – According to the latest data from Auto Trader, the second quarter has got off to a strong start for the used car market, with April recording growth in consumer demand, transactions, and retail prices. In fact, last month marked the first month-on-month (MoM) increase in a year[1], with the market recording a 1.1% uptick on a like-for-like basis.
Auto Trader’s Retail Price Index, which is based on 800,000 daily pricing observations, shows that the monthly growth is in line with traditional seasonal patterns; every year since Auto Trader began tracking used car prices in 2011, April has recorded growth following the March plate change. Although slightly behind the pre-COVID average of around 2.2%, it offers a positive sign of the market returning to historic norms.
Although retail prices remain down on 2023 (-9.3%), the month-on-month uptick is being fuelled by favourable market dynamics. Indeed, whilst the volume of used cars entering the market fell -1.1% year-on-year (YoY) last month, the first contraction in supply levels since the summer[2], consumer demand on Auto Trader was up around 9%, which is the highest rate of growth since December. As a result, Auto Trader’s Market Health metric, which assesses potential market profitability, rose over 10% over the same period, also marking the largest increase this year.
The strong demand is reflected in not only the circa 83.7 million cross platform visits to Auto Trader in April (up 8% on 2023), but also the speed in which used cars were sold. It took an average of just 27 days for a used car to leave retailers’ forecourts in April, which is one day slower than March (the fastest pace ever recorded), but two days faster than the same period last year.
As well as helping to stabilise retail prices, the very robust consumer demand in the market, which has remained constant since the New Year, is also driving sales. According to Auto Trader’s data, used car transactions increased around 6.3% year-on-year in April.
Reassuringly, Auto Trader’s consumer research points to sustained demand, with circa 80% of in-market car buyers surveyed[3] claiming to be as confident in their ability to afford their next car as they were last year. What’s more, 81% of the car buyers surveyed[4] said they were intending to buy their next car within the next 6 months, which is up from 77% the month prior.
Younger EVs outperforming market.
The positive month-on-month performance flowed through the different segments of the market in April. However, despite exceptionally robust levels of consumer demand (up 56% YoY), used electric vehicles were the only fuel type not to record price growth, with average prices dipping -0.4% MoM. In contrast, both petrol (£14,955) and diesel (£14,659) cars saw average prices rise 1.3%, despite recording demand of 8.4% and -5.7% respectively.
Highlighting how nuanced the used car market remains, and the need to follow the data at a granular level to identify the most profitable opportunities, the average price of 1–3-year-old EVs rose 2.5% on March, whilst petrol cars of the same age increased 2.3%. 1-3-year-old diesel cars rocketed 4.3%.
Commenting, Richard Walker, Auto Trader’s Data & Insights Director, said: “2024 got off to a strong start, and it’s very reassuring to see it continue so confidently into Q2, with very robust demand helping retailers to sell more stock, more quickly. Disappointingly, prices do remain down year-on-year, but the month-on-month growth and return to seasonal norms is another positive sign of the retail market stabilising. As ever, we continue to see plenty of nuance in the market, and so to ensure retailers are capturing the full potential available, I’d strongly urge retailers to utilise our valuations data, which is based on the largest single view of the retail market and available to all our partners.”
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), added: “It’s encouraging to see that the robust start of the used car market in 2024 has continued as we enter Q2. There are also signs that the market is returning to pre-pandemic levels. Despite this, it’s notable that whilst younger EVs are outperforming the market, used electric vehicles were the only fuel type not to record price growth demonstrating that the used electric market is still maturing.”
Top 10 used car price growth (all fuel types) | April 2024 vs April 2023 like-for-like
Ranks | Make | Model | Apr 24 Average Asking Price | Price Change (YoY) | Price Change | |
1 | Audi | R8 | £75,527 | 4.2% | 1.6% | |
2 | Mercedes-Benz | SL Class | £28,890 | 3.4% | 2.4% | |
3 | Volkswagen | Beetle | £7,770 | 2.5% | 2.8% | |
4 | Porsche | Boxster | £20,404 | 1.4% | 1.8% | |
5 | Land Rover | Freelander 2 | £7,833 | 0.7% | 2.7% | |
6 | Bentley | Continental | £55,736 | 0.4% | 1.7% | |
7 | BMW | M5 | £43,976 | -0.1% | 3.9% | |
8 | Peugeot | Partner Tepee | £8,996 | -0.6% | 1.8% | |
9 | Mercedes-Benz | CLS | £17,158 | -0.6% | 1.8% | |
10 | Toyota | Yaris | £13,010 | -0.9% | 2.0% | |
Top 10 used car price contraction (all fuel types) | April 2024 vs April 2023 like-for-like
Rank | Make | Model | Apr 24 Average Asking Price | Price Change | Price Change (MoM) | ||
10 | Land Rover | Discovery Sport | £21,774 | -18.9% | 2.4% | ||
9 | SKODA | Enyaq | £33,723 | -19.0% | 1.4% | ||
8 | Vauxhall | Corsa-e | £15,642 | -19.1% | 4.5% | ||
7 | Land Rover | Range Rover Evoque | £21,397 | -19.2% | 2.3% | ||
6 | Tesla | Model 3 | £25,099 | -20.1% | 4.9% | ||
5 | DS AUTOMOBILES | DS 3 | £7,809 | -21.0% | -0.3% | ||
4 | DS AUTOMOBILES | DS 3 CROSSBACK | £14,447 | -21.8% | 1.3% | ||
3 | Citroen | e-C4 | £18,968 | -22.3% | 4.6% | ||
2 | Jaguar | I-PACE | £31,390 | -22.7% | 1.5% | ||
1 | Audi | e-tron | £28,846 | -24.6% | 2.4% | ||
[1] April 2023
2 July 2023 recorded -1.1% drop in supply.
3 Survey of c.300 consumers, conducted in April 2024
4 Survey of c. 500 consumers, conducted in April 2024
