The UK used car market maintained strong momentum in February, with stable pricing and faster stock turn signalling confident consumer demand, according to the latest Autotrader Retail Price Index.
The data, which analyses around 800,000 daily pricing observations across the retail market using AI, shows average used car prices remained flat month-on-month in February at 0.0%.
At £17,197, the average price marked the second-highest level since November 2023, just slightly behind January’s figure.
Strong consumer engagement continues to underpin the market. Autotrader recorded 80.2 million platform visits during February, with market data suggesting that many of January’s browsers converted into buyers the following month.
This shift toward high-intent purchasing is reflected in the speed at which vehicles are leaving dealer forecourts. On average, used cars sold in just 27 days during February – one day faster than the same month last year and 14 days quicker than in January.
Older cars selling fastest
While headline prices remained stable, Autotrader’s data highlights a more complex market beneath the surface, with supply dynamics shaping pricing and stock performance across different age segments.
The traditional core of the market, vehicles aged five to ten years, is currently among the fastest selling groups, with cars leaving forecourts in an average of 26 days in February.
However, supply pressures are emerging. Autotrader analysis suggests the volume of five to seven-year-old vehicles could fall by around 35% over the next two years compared with 2024 levels, reflecting the impact of pandemic-era production disruptions.
As this supply shortage filters through the market, both franchised and independent retailers may face increased competition for stock, potentially reshaping forecourt strategies.
Meanwhile, older vehicles aged between 10 and 15 years proved the fastest-selling segment overall, averaging just 25 days to sell.
This segment is also experiencing the strongest price growth, reaching an average of £7,006 in February – up 9.4% year-on-year and 0.7% month-on-month.
Autotrader said the performance of this segment has already attracted interest from some larger franchised dealer groups.
Nearly-new models face pressure
At the opposite end of the market, nearly-new vehicles aged under 12 months are facing growing competition from heavily discounted new cars.
Average prices for these models fell by 4.6% year-on-year and 0.8% month-on-month in February, the largest price decline among all vehicle age groups.
Despite these price reductions, nearly-new vehicles remained on forecourts longer than other segments, taking an average of 29 days to sell.
Electric vehicles also continue to play an important role in the market. Used EVs took an average of 29 days to sell in February, compared with 26 days for petrol vehicles.
However, EVs are selling one day faster than they did in February last year, matching the year-on-year improvement recorded by petrol vehicles.
Marc Palmer, head of strategy and insights at Autotrader, commented: “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. To support the industry through this transition, we’re enabling our partners to advertise double their contracted volume at no additional cost for a period of time.
“This gives retailers the opportunity to test these new profiles alongside their core stock. Alongside our powerful AI-powered buyer insights, we believe this is among the most effective ways we can help our partners capture today’s high-intent buyers and confidently navigate the changing supply landscape.”
