The UK used car market proved to be resilient in March despite pressure on wider consumer confidence, according to Autotrader.
The vehicle sales platform said that like-for-like prices were down by 0.2% month-on-month, which it said was in line with seasonal norms, while year-on-year prices were down by 0.4%.
The average sale price in March of £17,370 was up by £455 year-on-year – this comparison is not based on like-for-like vehicles.
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Autotrader said that although recent geopolitical events, leading to rising energy and fuel prices, had affected wider consumer confidence, the used car market was protected from this by cars being seen as a necessity rather than a discretionary purchase. Autotrader noted that the used car market had historically proven robust during periods of economic disruption.
Older cars selling quickly
Autotrader said that in March, ten to 15-year-old cars were the fastest to sell, at an average of 24 days, while seeing a 9.7% price increase, which it says is likely due to a shortfall in five to seven-year-old stock resulting from lost new car sales during the Covid-19 pandemic.
It also reported a record month in enquiries about EVs in both the new and used markets, which it attributed to growth in used vehicle supply and rising petrol prices.
Marc Palmer, head of strategy and insights at Autotrader, said: “The wider retail landscape is undoubtedly facing turbulence right now, with rising energy prices understandably denting general consumer confidence. However, our data proves yet again that the used car market is incredibly resilient. People still need to get to work, run their families, and live their lives, making car ownership an absolute necessity.
“We’ve seen the market weather similar macro shocks over the years with remarkable stability, and the fact that consumer demand is consistent despite this global uncertainty highlights that buyer intent remains exceptionally strong.
“For retailers, the key to success will be leveraging data to stay agile, pricing accurately to the live market, and capitalising on the high-intent demand that is clearly out there.”