Dealers should avoid unnecessary forecourt discounting as used car prices remain stable and stock continues to sell at last year’s pace, according to Autotrader.
Like-for-like used car retail prices were unchanged month on month in October, with the average advertised vehicle priced at £17,321.
Prices were 1.8% lower than a year earlier, compared with an annual decline of 1% in September, according to Autotrader’s latest Retail Price Index.
However, vehicles took an average of 29 days to sell, unchanged from October 2025 and one day faster than in September.
Three quarters of those surveyed by Autotrader also said they intended to buy a car within the next six months.
The figures follow SMMT data showing that the used market achieved its strongest first-nine-month performance since before the pandemic, with transactions rising 0.3% to 6,056,169.
EV demand outpaces supply
Autotrader said used electric cars on its platform recorded their sixth consecutive month of annual price growth, with average values rising by 2.8% to £25,263.
EV prices also increased by 1.3% month on month, making electric the only major fuel type to record annual price growth.
Autotrader said consumer demand for used EVs increased by 38.1% year on year, considerably ahead of an 11.5% increase in supply.
Electric cars were also the fastest-selling fuel type, taking 25 days on average to leave dealers’ forecourts. This was four days faster than in September and four days quicker than petrol models. Diesel cars took an average of 33 days to sell.
Petrol car prices fell by 1.9% year on year to an average of £14,589.
Older cars retain pricing power
Vehicles aged between 10 and 15 years recorded annual price growth of 4.6% to £7,290, alongside a 1.5% monthly increase.
Prices for cars more than 15 years old rose by 3% year on year to £5,294, reflecting continued demand for affordable petrol and diesel stock.
Younger cars recorded annual declines. Prices for vehicles under one year old fell by 3.5%, while one to three-year-old cars declined by 2% and three to five-year-old vehicles by 2.3%.
Marc Palmer, head of strategy and insights at Autotrader, said: “For retailers, that means pricing from the retail market back, rather than from the trade market up. Where retail demand supports the price, softer wholesale values can create an opportunity to buy well and protect margin, not an automatic reason to reduce forecourt prices.
“The key is to respond to the evidence on each car, rather than let uncertainty in the headlines drive reductions that aren’t needed.”
Palmer said the market had repeatedly demonstrated its resilience during periods of economic uncertainty, with the underlying need for personal transport continuing to support demand.
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