Used automotive retail prices stable, as market sees record begin to 2025

Used cars are selling at a record pace and costs are continuing to stabilise up to now in 2025, in keeping with the most recent data from Auto Trader.

Based on over 800,000 day by day observations across the entire retail market, Auto Trader’s Retail Price Index reveals the common retail price of a used automotive (£16,774)  was flat in January on a month-on-month (MoM) and like-for-like basis; a contrast to the 1.9% decline recorded in January 2024.

And with trade values recently trending above retail, it’s likely prices will strengthen further over the approaching months because the market adjusts accordingly.

Stability in retail prices is the results of the continued post-Covid squeeze in used automotive supply (down 3.1% year-on-year in January) coupled with buoyant levels of consumer demand, as reflected within the circa 87.1 million cross-platform visits to Auto Trader last month.

That audience level not only marks a 24.8% increase on December (69.7 million), but the very best variety of visits in a January ever recorded.

It also follows the degrees of engagement seen throughout 2024, which totalled circa 978 million visits, an increase of seven% YoY.

Top 10 used automotive price growth (all fuel types) | January 2025 vs January 2024 like-for-like  

Used cars selling at record pace

The mix of strong demand, and in lots of cases, the unnecessary under-pricing of stock, is leading to used cars selling at a record pace.

In truth, it took a mean of just 38 days for a used automotive to sell in January, which is three days faster than in January 2024 (41 days). It’s also the fastest begin to the 12 months since Auto Trader’s records began in 2019.

With such healthy levels of consumer appetite out there, the rapid turnaround of stock can be on the potential expense of margin opportunity.

Indeed, Auto Trader’s data shows that circa 61,000 high demand used cars are currently being priced below their true market value, leading to over £24 million in potential margin being missed – the equivalent of around £3,000 per retailer.   

Automotive buying confidence stays despite economic concerns  

In keeping with Auto Trader’s retail data, demand is translating into sales, albeit after a slow restart following the top of the festive period that combined with a combination of floods and snow disruptions.

Sales performance quickly improved over the course of the month though with the ultimate weeks of January recording a powerful increase over the identical period last 12 months.

Because of this, overall sales in January were a comparatively flat, down by 1% YoY.

This solid performance contrasts with recent uncertainty surrounding the economy, as reflected within the steeper than expected fall in official consumer confidence levels in January.

Although there are potential risks around inflation and unemployment this 12 months because the Chancellor’s Budget is implemented from April – in addition to growing tariff rhetoric from President Trump – there’s cause for optimism for the months ahead, with consumer spending and real incomes forecasted to rise in 2025.

But importantly, despite the tougher wider economic background, demand and automotive buying confidence remain largely unaffected, with Auto Trader’s data revealing stable levels of consumers’ confidence in affording their next automotive purchase.

Indeed, in a study of three,700 market automotive buyers searching on Auto Trader (conducted in December), 57% agreed they were ‘way more confident’ or ‘a bit more confident’ of their ability to pay for his or her next automotive (35% said ‘in regards to the same’). That is up from 47% 12 months earlier.

What’s more, almost three quarters of consumers are still trying to purchase a automotive in the following six months, which is consistent with the identical time last 12 months.

As such, Auto Trader’s 2025 outlook stays positive, predicting the used automotive market to keep up the strong growth momentum of the last two years and rise from circa 7.61m sales in 2024 to around 7.70m in 2025.

Richard Walker, Auto Trader’s data & insights director, said: “Following a really strong 2024, the used automotive market continues to point out its huge resilience within the face of broader economic turbulence.

“The 12 months ahead will hold some unique challenges for the industry, but our data should offer some optimism for 2025 – demand is powerful, prices are stable, and cars are leaving forecourts at a record pace.

“And despite some negative rhetoric, based on the solid market fundamentals we’re tracking, we don’t see any significant or immediate threat to consumer appetite for used cars.”

Walker said it’s disappointing though for retailer profitability performance to see potential margin still being missed with too many cars, including a few of the most desirable stock, being under-priced.

He added: “With so many buyers returning to their next automotive research following the festive period, there’s an enormous opportunity for retailers over the approaching months.

“In addition to ensuring your stock is where consumers can find it, I hope our insights will give retailers the boldness to cost to the market and secure the margins which can be available.”

Top 10 used automotive price contraction (all fuel types) | January 2025 vs January 2024 like for like