Used car prices hold as February demand speeds up sales

Used car prices remained stable in February while strong consumer demand helped accelerate sales across UK forecourts, according to the latest data from Autotrader.

Average month-on-month prices were flat at 0.0%, with the typical used car priced at £17,197 – the second-highest level recorded since November 2023, just behind January’s figure.

The steady pricing comes amid robust buyer activity, with Autotrader recording 80.2 million visits to its platform during February. Market data suggests that heightened browsing activity seen at the start of the year translated into firm purchasing demand, contributing to faster stock turnover.

Cars sold in an average of 27 days during February, one day quicker than the same month last year and 14 days faster than January, reflecting a seasonal uplift but also stronger buyer intent.

Beneath the headline figures, the market showed increasing variation across different vehicle segments. Mid-aged cars – typically between five and ten years old – remained among the fastest-selling, leaving forecourts in around 26 days, as supply constraints begin to emerge following pandemic-era production disruptions.

Autotrader said the number of five- to seven-year-old vehicles is expected to fall significantly over the next two years, potentially intensifying competition among retailers for stock in this core segment.

Older vehicles, however, are emerging as a key area of opportunity. Cars aged between 10 and 15 years were the fastest-selling segment in February, taking just 25 days to sell. Prices in this category also rose sharply, increasing by 9.4% year-on-year to an average of £7,006.

At the other end of the market, nearly new vehicles faced increasing pressure from discounted new models. Prices for cars under 12 months old fell by 4.6% year-on-year and 0.8% month-on-month, with these vehicles taking longer to sell at an average of 29 days.

Electric vehicles (EVs) continued to show steady performance, taking an average of 29 days to sell – slightly slower than petrol cars but improving year-on-year at a similar rate.

Marc Palmer, head of strategy and insights at Autotrader, said: “Based on what we’re hearing and tracking, the used car market is in robust shape – prices are stable, if not recording sizeable growth in some segments, the speed of sale is following seasonal trends, and we’ve had positive reports on sales volumes.

“However, the impending supply disruption will require retailers to adapt and diversify. We recognise, however, that pivoting into new vehicle profiles carries risk.”

The data points to a market that remains active but increasingly complex, with retailers needing to respond to changing supply dynamics and evolving consumer preferences to maintain momentum in the months ahead.