Used car prices edge up as fleet sales tighten supply

The UK’s used car market saw average prices rise for the second consecutive month in September, but supply pressures continue to challenge retailers as fleet sales reduce the volume of younger vehicles returning to the market.

According to figures from Autotrader, the average price of a used car last month was £17,036, a 0.6% increase on a like-for-like basis compared with September 2024. It marks only the second period of year-on-year growth since August 2023, following two years of price contraction.

On a month-to-month basis, prices dipped slightly by 0.1%, in line with seasonal trends. Autotrader’s data, which tracks around 800,000 vehicles across the retail market, shows cars are currently selling in around 30 days, maintaining the pace seen earlier in the year.

Consumer demand has remained steady, with 79 million visits to Autotrader’s platform in September. Research among 1,000 car buyers found that 45% felt more confident about being able to afford their next vehicle than they did a year earlier, up from 32% in 2024.

Retailer pricing has also stabilised, with all fuel segments reporting firmer year-on-year trends. Used electric vehicles have seen average prices improve by around four percentage points since June. However, Autotrader estimates that around 63,000 cars are currently being sold below optimal value, representing a missed margin opportunity of £26.7 million across the sector.

While demand is translating into sales growth — up 1% year-on-year in September — supply remains constrained, particularly for 3–5-year-old cars. Independent retailers recorded a 3% rise in sales, but franchised dealers were down 2%, reflecting the shortfall in younger stock. Volumes of 3–5-year-old cars fell 11% year-on-year.

The shortage is linked to structural changes in new car sales channels. Fleet now accounts for around 60% of new registrations, reducing the flow of vehicles back into the market through part exchanges and personal contract plan renewals. While franchised retailers have turned to 1–3-year-old vehicles, independents have also increased their presence in this segment, sourcing ex-fleet vehicles through auctions and buying platforms.

He added: “Prices are growing, demand is robust, and cars are selling at pace, which should give retailers confidence for the months ahead. But sourcing remains the industry’s Achilles’ heel, especially for those reliant on younger stock.”