Used car sales fell by 7.2% month-on-month in April, according to data from Brego.
The valuation insight company also said that total used car advert volumes saw a 0.9% monthly decline.
Brego said the softening of the market, revealed in its latest Car Market Insight Report, followed a strong March, when there had been a 14.1% used car sales increase.
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It said dealers had reported clear drops in footfall and online leads, with activity becoming more focused around older cars and EVs, which it attributed to wider cost pressures on consumers and weaker confidence.
Brego did note an 8.1% increase in private advert volumes during April, which it said suggested more drivers wanted to change their vehicle.
The month also saw average retail sale prices fell by 2.8% to £14,454, which Brego said reflected a market increasingly shaped by affordability and lower-cost stock.
Increased demand for EVs reported
Brego said EVs were seeing strong demand, increasing sales by 1% despite a 7.5% fall in advertised EV volumes.
It also reported a 3% increase in pre-registered adverts in April, although it added that the top ten pre-registered cars represented a smaller share of the market than in March. It said this suggested registration activity was spread across a wider mix of models.
Rupert Pontin, head of insight and communications at Brego, said: “April delivered a very different picture to March, with used car sales falling and dealer feedback pointing to a more cautious consumer environment.
“The data shows buyers are still in the market but affordability and running costs are clearly influencing decision-making.
“What stands out is the shift towards older, lower-cost cars and the continued interest in EVs. Consumers are responding to economic pressure in a very practical way and dealers will need to stay close to local demand, pricing and stock mix as the market moves through May.”