Used car prices hit two-year high as market defies budget uncertainty

The UK’s used car market surged to its strongest pricing level in nearly two years in November, shrugging off wider economic headwinds and post-Budget uncertainty as tight supply conditions continued to support values.

According to new analysis from Autotrader, the average retail price of a used car reached £17,103 last month – a 0.5% increase year on year, and the highest figure recorded since early 2024. Although prices dipped marginally compared with October, industry analysts described the movement as a normal seasonal adjustment rather than a signal of weakening demand.

Autotrader’s Retail Price Index, drawing on around 800,000 daily data points, shows pricing resilience has been underpinned by persistent supply shortages, particularly among three- to five-year-old vehicles – where the market is still operating with around 1.8 million fewer cars than in 2019. The imbalance is giving independent retailers a competitive edge over franchised groups as stock profiles diverge.

Despite renewed economic and policy uncertainty following last week’s Budget, Autotrader said consumer demand has remained robust throughout the autumn. Used cars continue to be viewed as a necessity rather than discretionary spending, with online engagement and search intensity tracking ahead of typical seasonal patterns.

Cars took an average of 32 days to sell in November – in line with last year – while electric vehicles were the fastest-selling fuel type, clearing forecourts in just 27 days, two days quicker than a year earlier. Analysts say the figures underline both improving EV acceptance among buyers and the opportunity for retailers able to source competitively priced stock.

Petrol values continued to perform strongly, up 1.5% year on year – their eighth consecutive month of annual growth – while diesel prices rose 2.7%. EV prices remained 5.5% lower than a year ago, though the rate of decline continued to soften as electric models settle into a more stable relationship with the broader market.

The standout performers were 10–15-year-old cars, with prices climbing 8.1% year on year, reflecting intense demand for more affordable stock against a backdrop of constrained new-car supply and squeezed household budgets.

Autotrader forecasts around 9.76 million new and used vehicles will change hands this year, with volumes expected to exceed 10 million in 2026, returning the market to activity levels last seen before the pandemic.

Although transactions typically slow in the final quarter, consumer browsing behaviour remains strong. Autotrader notes that used car sales have jumped around 40% between December and January in each of the past two years, with buyers spending around 88 days researching before committing to purchase – meaning much of today’s market engagement is likely to convert into early-2026 sales.

Marc Palmer, Head of Strategy & Insights at Auto Trader, said the data provided “another month of encouraging stability”.

“Prices are the highest they’ve been for almost two years, the pace of sale is holding steady, and demand has remained robust despite the noise around last week’s Budget,” he said.

“Car ownership is essential for most households, and that continues to underpin the strength of the used market even when wider economic indicators are mixed.”

Palmer added that the maturing EV sector and tight supply across core age brackets meant fundamentals “remain broadly positive”, though retailers will need strong sourcing strategies to maintain momentum.

“With just a month to go, the market is on track to get close to 10 million cars changing hands this year, and we expect 2026 to push comfortably above that… retailers who maintain visibility and pricing discipline are well placed to start the new year with real momentum,” he said.