Demand Fuels Used Car Price Growth: What It Means for the Motor Trade
The used car market continues to show its strength as we move into the final quarter of 2025. Despite wider political and economic uncertainty, the latest Auto Trader report paints a picture of solid demand, stable prices and growing consumer confidence. For UK dealers, this resilience offers both opportunity and a few ongoing headaches when it comes to stock.
Prices on the Rise Again
According to Auto Trader’s Used Car Retail Price Index, the average used car sold for £17,036 in September – a 0.6% increase year-on-year. It’s the second consecutive month of annual growth following two years of contraction. While prices dipped 0.1% from August, that’s in line with the typical seasonal slowdown of around 0.3%.
For motor traders, that slight monthly dip is no cause for concern. As Marc Palmer, Auto Trader’s Head of Strategy and Insights, put it, “The used car market is showing remarkable resilience and is carrying some real momentum as we enter the closing quarter of 2025.”
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Strong Demand Keeps the Market Moving
Consumer appetite for used vehicles remains robust. Auto Trader recorded around 79 million visits across its platforms last month, with cars selling in an average of 30 days – close to record speed.
In a sign of returning optimism, 45% of consumers now feel more confident about affording their next car than they did last year, compared with 32% in 2024. Overall, nine in ten are as confident or more confident than a year ago, and nearly three-quarters plan to buy within the next six months.
This confidence continues to underpin the used car market, and for dealers, it means consistent turnover and faster stock movement.
Fleet Sales Tighten Used Car Supply
While demand remains high, the supply side tells a more complicated story. Fleet sales account for around 60% of new registrations, meaning fewer vehicles are feeding back into the market through part-exchanges, PCP upgrades or renewals.
The shortage of younger stock, especially three- to five-year-old cars, is tightening further. Franchise retailers are feeling the squeeze most, with a reported 11% drop in supply of these cars compared to last year. Independent retailers, however, appear to be faring better, posting a 3% sales increase year-on-year.
This shift highlights how fleet sales continue to impact used car availability, forcing dealers to compete more aggressively for desirable stock and rethink sourcing strategies. As Palmer warned, “Sourcing remains the industry’s Achilles’ heel – especially for those reliant on younger stock.”
Electric Vehicles Regaining Ground
Used electric vehicles (EVs) are quietly strengthening too. Auto Trader data shows average EV values have improved by around four percentage points since June. Despite this progress, the platform notes that 63,000 cars are currently listed below their optimum retail price, representing a missed £26.7 million in potential margin – or more than £3,000 per retailer.
For dealers, this is a reminder to track data trends closely and price competitively. As the Auto Trader used car price index suggests, even small adjustments to pricing strategy can make a meaningful difference to profit margins.
What’s Next?
The UK used car market trends for late 2025 point towards continued resilience, supported by strong consumer confidence and steady retail activity. However, stock shortages will likely persist, driven by high fleet registrations and slow replenishment of younger vehicles.
For motor traders, the challenge is balancing aggressive sourcing with smart pricing and efficient stock rotation. The dealers who succeed will be those who adapt quickly to market conditions and leverage the right data to make informed buying and pricing decisions.
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