The continued supply shortage is poised to intensify competition for used vehicles, particularly as demand for low-emission and fuel-efficient cars increases, according to Autorola.
The online remarketing business estimates the market will see a shortfall of 500,000 to 700,000 used cars compared to pre-Covid levels, as fewer three-year-old vehicles return to the market. This imbalance is expected to push up prices as demand outpaces supply.
While hybrids and EVs are expected to grow in popularity, their supply constraints could further drive up prices in this segment.
In Q4 2024, the used car market experienced unseasonal price increases across all fuel types on Autorola’s platform, highlighting the growing pressure on supply:
- Petrol cars: Prices rose 6.4% (£934), averaging £14,454 at 40 months and 22,486 miles.
- Hybrids: A 3.1% increase (£663) brought prices to £21,386 at 35 months and 20,018 miles.
- Electric vehicles (EVs): Prices climbed 3.1% (£381) to £18,668, with an average age of 28 months and 17,514 miles.
- Diesel cars: A modest 0.7% increase (£125) saw prices reach £18,668 at 43 months and 32,607 miles, as diesel’s market share dropped to a record low of 17.2%.
Autorola reports Q4 2024 market trends that saw petrol vehicles remaining dominant, accounting for 61.9% of used cars sold online; hybrids gaining momentum, rising to 17.8% market share and EV slipping back to just 3.0% of sales.
“Q4 2024 provided us with an early sign of used prices rising and this trend will continue throughout 2025 and into 2026 because of the large shortfall in used cars coming into the market,” explained Autorola country manager Neil Frost.
“That means strong competition for used stock in the wholesale market which will translate into higher retail prices for consumers,” he added.