Used car market gains momentum as all retail channels grow

The UK used car market strengthened in August, with transaction volumes rising 2.6% year-on-year and franchise, independent and supermarket retailers all recording growth for the first time this year, according to the latest data from Autotrader.

The average asking price of a used car reached £17,131 during the month, while like-for-like prices were broadly stable, falling 0.1% year-on-year and 0.4% compared with July, in line with typical seasonal trends.

Autotrader data also indicated that stock continued to move relatively quickly. Used vehicles took an average of 30 days to sell in August, unchanged from a year earlier and one day faster than in July.

The growth in transactions was spread across the market, with August marking the first month of 2026 in which franchise, independent and supermarket retailers all reported higher sales volumes.

The retail performance comes despite some softening in wholesale vehicle values, with Autotrader arguing that stable advertised prices and stock turn indicate continued underlying consumer demand.

Used EV prices continue to strengthen

Electric vehicles were among the strongest-performing parts of the used market, with like-for-like EV prices increasing for a third consecutive month.

Used EV prices rose 3.8% year-on-year and 0.5% month-on-month to an average of £25,095, representing the strongest annual growth among the fuel types measured.

The increase was particularly pronounced among three-to-five-year-old EVs, where prices climbed 9.4% year-on-year and 1.4% month-on-month to £20,351.

Vehicles in this age group also sold more quickly, taking an average of 26 days compared with 27 days across the wider used EV market.

By contrast, one-to-three-year-old used cars saw prices decline 1.8% year-on-year, with Autotrader suggesting that increasingly competitive new-car offers are putting pressure on nearly-new vehicles.

Older cars remained more resilient. Prices for 10-to-15-year-old vehicles increased 6.9% year-on-year to an average £7,183, while cars more than 15 years old recorded growth of 2.6%.

Marc Palmer, Head of Strategy and Insights at Autotrader, said:

“August’s data points to a used car market with real underlying momentum. Prices remain stable, cars are selling quickly, and transaction volumes are growing across franchise, independent and supermarket retailers for the first time this year.

“That combination should give retailers real confidence that demand remains strong, and critically, that current retail price levels are continuing to convert into sales.”

Palmer added that softer wholesale values could present margin opportunities for retailers able to source vehicles competitively, particularly in areas of stronger consumer demand such as used EVs and older vehicles.