12:30 pm, February 5, 2025
Car dealers are still underpricing some of in-demand used cars says Auto Trader, as the firm saw record numbers of car buyers using its platform last month.
Auto Trader recorded around 87.1 million cross-platform visits last month – the highest January on record and a near 25% increase on December.
This, coupled with dealers ‘unnecessarily’ under-pricing stock, saw used cars selling at record pace in January.
The average time for a used car to sell last month was 38 days – three days faster than January 2024, and the fastest since Auto Trader began monitoring this data in 2019.
The company believes around 61,000 high demand used cars are being priced below their market value, resulting in £24m potential margin being lost.
The average price of a used car in January was £16,774 – flat compared to December but up compared to the -1.9% recorded in January 2024.
The used cars that rose and fell in price is listed below.
Auto Trader also gave its prediction for used car sales in 2025 – 7.70 million and up from the 7.61 sales last year.
Richard Walker, Auto Trader’s data and insights director, said: ‘Following a very strong 2024, the used car market continues to show its huge resilience in the face of broader economic turbulence.
‘The year ahead will hold some unique challenges for the industry, but our data should offer some optimism for 2025 – demand is robust, prices are stable, and cars are leaving forecourts at a record pace.
‘And despite some negative rhetoric, based on the solid market fundamentals we’re tracking, we don’t see any significant or immediate threat to consumer appetite for used cars.’
He added: ‘It’s disappointing though for retailer profitability performance to see potential margin still being missed with too many cars, including some of the most desirable stock, being under-priced.
‘With so many buyers returning to their next car research following the festive period, there’s a big opportunity for retailers over the coming months.
‘As well as ensuring your stock is where consumers can find it, I hope our insights will give retailers the confidence to price to the market and secure the margins that are available.’
Top 10 used car price growth – January 2025 vs January 2024
- BMW X5 – £39,377 | +10.6% YoY | +0.2% MoM
- Porsche 718 Cayman – £59,248 | +8.3% YoY | +3.9% MoM
- Volkswagen Touareg – £29,029 | +7.3% YoY | +0.4% MoM
- BMW M4 – £39,495 | +6.0% YoY | +2.0% MoM
- Mazda MX-5 – £10,121 | +5.5% YoY | +1.7% MoM
- Toyota C-HR – £20,954 | +5.5% YoY | +1.3% MoM
- BMW X4 – £29,260 | +5.4% YoY | -1.1% MoM
- Mini Countryman – £18,293 | +5.4% YoY | -0.4% MoM
- Suzuki Swift – £9,601 | +5.1% YoY | +0.1% MoM
- Skoda Karoq – £19,948 | +4.7% YoY | +0.1% MoM
Top 10 used car price contraction – January 2025 vs January 2024
- Vauxhall Zafira Tourer – £6,097 | -18.7% YoY | -0.7% MoM
- BMW iX1 – £35,986 | -17.5% YoY | -0.3% MoM
- Ford Grand C-Max – £6,335 | -17.1% YoY | -0.8% MoM
- DS 3 – £6,631 | -16.8% YoY | -2.8% MoM
- Tesla Model Y – £31,588 | -16.0% YoY | +0.2% MoM
- Ford B-Max – £5,293 | -15.0% YoY | +0.4% MoM
- Polestar 2 – £24,791 | -14.5% YoY | -0.5% MoM
- Hyundai i40 – £5,791 | -14.4% YoY | -0.2% MoM
- Hyundai ix20 – £6,115 | -14.3% YoY | -1.6% MoM
- Nissan Leaf – £11,459 | -13.6% YoY | -1.7% MoM
