The used car market has made a robust start to the second half of 2025, with key indicators such as consumer demand, speed of sale and transaction volumes remaining stable throughout June, according to the latest data from Auto Trader.
However, growing complexity in supply and demand is exposing a performance gap between independent and franchise retailers.
Despite ongoing global economic uncertainty, consumer confidence edged upwards in June. Auto Trader’s research revealed that nine out of ten car buyers remain confident in their ability to afford their next car, with two-thirds of over 1,100 consumers surveyed planning to buy within six months and two in five within just two weeks.
This high buying intent was reflected in Auto Trader’s traffic figures, which hit 83 million cross-platform visits in June – a 3.2% year-on-year (YoY) increase and the platform’s highest ever June audience, following a record-breaking May.
That engagement is translating into sales, with used cars taking just 29 days on average to sell in June – a full day faster than last year and two days quicker than in May.
Retail transactions also saw year-on-year growth, rising 3.2%, according to Auto Trader’s retail sales data. However, a closer look reveals a widening gulf in performance between different types of retailers.
Independent retailers pull ahead
While independent retailers saw a robust 6.1% rise in sales last month, franchise retailers posted a marginal 0.1% year-on-year increase. The disparity is being driven by differing stock profiles and structural challenges affecting newer vehicles, particularly those aged 3-5 years – the core segment for many franchise operations.
The impact of the COVID-19 pandemic, which saw 3 million fewer new cars registered, continues to distort the used market. The number of 3-5-year-old vehicles in the UK parc has shrunk from 4.8 million in 2019 to just 3 million by the end of 2024 – a 37% drop – and is projected to fall further to 2.9 million by year-end, the lowest on record.
While franchise retailers reliant on this shrinking cohort face stock acquisition challenges, many independent retailers remain relatively unaffected. In fact, demand for older, more affordable cars is rising. Interest in 5-10-year-old vehicles grew by 3.4% YoY in June, while demand for cars over 10 years old jumped 8%.
Some franchise retailers have adapted by shifting their forecourt mix to include older stock or by focusing on brands like Volvo and Kia, which have retained or increased market share in recent years.
Retail prices hold steady despite pressure
Auto Trader’s Retail Price Index, based on 800,000 daily pricing observations, showed overall price stability across the market, with the average retail price of a used car standing at £16,780 in June – down just -0.1% YoY. This marks the third consecutive month of flat pricing after 19 months of decline, signalling broader market health.
However, younger cars continue to see pricing pressure. Vehicles under 12 months old dropped -3.4% YoY to an average of £32,664, and 1-3-year-old cars fell -1.4% to £25,112, partly due to heavy discounting in the new car market. In contrast, 5-10-year-old vehicles rose 1.2% YoY to £13,541, while cars over a decade old were up 4.1% to £6,561. Month-on-month, used car prices dipped by -0.6%, in line with seasonal trends.
Strategic Shift Needed
Commenting, Marc Palmer, head of strategy and insights, at Auto Trader, said: “As we enter the second half of the year, our data shows that the fundamentals of the used car market remain strong; consumer demand is robust, and cars are selling at pace, which combined with the overall softening in supply, means retail prices are stable, and continue to follow seasonal norms.
“At a granular level, there is considerable nuance in the market, however, which is impacting retailers’ traditional stock profiles and making the job of finding profitable cars more competitive. It’s why using insights over instincts to power your forecourt strategy is more important than ever.”