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The used car market is set for a strong finish to 2024, according to Auto Trader.
The average price of a used car last month was £16,408, down -7.4% YoY on a like-for-like basis but the lowest annual decline since December 2023.
Richard Walker, Auto Trader’s Data & Insights Director, said: “It’s good to see retailers showing more confident pricing trends and following the supply and demand data, helping 2024 end on a far stronger note than 2023.
“Last year, many retailers were unnerved by largely unwarranted price cuts in the wholesale market but thankfully today’s levels of demand, combined with continuing tightness of supply, mean that we haven’t seen that pattern repeated this year.
Month-on-month, the market has risen 1% which is up from October 2023 (-0.2%) but has not returned to pre-pandemic averages of around 1.9%.
There have been sustained levels of consumer demand and ongoing constraints in used car supply. Whilst YoY supply was down -5.6% in October, Auto Trader’s data showed that demand on its platform had risen strongly for the fourth consecutive month, increasing 9.9% YoY.
Auto Trader’s market health indicator increased by 16.4% YoY as demand outpaced supply and cars sold faster (on average 29 days) to leave forecourts in October, three days quicker than the same month last year. Retailers are pricing more confidently than this time last year
Used petrol car show the smallest decline, down -6.4% YoY at £14,699, diesels down -7.1% at £14,066 and EVs priced 13.4% lower (£26,819). The typical plug-in hybrid is down 12.5% year-on-year (£30,834).
Used EVs performed well in October with used BEV prices rising (2.1%) MoM for the first time in two years.
Walker said: “Solid market health indicators in the used electric market are a bright spot as we see overall BEV prices up month on month. The 3-5 year old EV segment continues to lead the overall market in selling faster than all others.
“We’re hopeful that as retailer confidence continues to grow in the second-hand electric segment, more and more will be ready to get involved and – as with all segments of the market – we’d urge all retailers to use data to make informed electric stocking decisions.”