Speed of sale has reached record levels, says Auto Trader

Speed of sale and consumer demand within the used car market have reached record levels in March, according to Auto Trader.

Used cars took an average of just 25 days to leave forecourts, the fastest monthly pace ever recorded by Auto Trader, two days faster than February and three days faster than March 2023.

Overall consumer demand rose 6% YoY last month. A rise in demand is reflected in the 89.1 million cross platform visits recorded by Auto Trader.

Cars below 12 months old are recording high levels of consumer demand and supply, up 30.4% YoY and 42% respectively. Strong supply is outpacing consumer demand which is currently stable for more affordable cars, stock aged 10-15 years.

Nearly new models will face competition as manufacturers apply heavy discounts to brand-new cars. Manufacturers are resorting to short cycle sales channels to achieve volume targets, supply levels are expected to increase and demand may soften.

Retail prices in the used car market are stable. According to the Auto Trader Retail Price Index, average prices softened just -0.7% month-on-month in March, consistent with pre-COVID norms for this time of year.

Richard Walker, Auto Trader’s data & insights director, said: “Despite an uncertain economic and political backdrop, we’ve seen a positive start to 2024, with demand remaining robust throughout the quarter.

“But whilst our outlook for the rest of the year is confident, retailers face an incredibly nuanced and complex market which will continue to move at pace.”

Motors has also reported faster stock turn in March.