9:27 am, January 7, 2025
The average price of a used car fell by 0.6% to £16,649 in December as the market remained stable despite the traditional seasonal slowdown.
That is according to new data from Auto Trader which has today (Jan 7) published its latest Retail Price Index report.
The data found that last month’s decline in prices was significantly lower than the same point last year, when retail prices fell by a much heftier 2.3% (month-on-month), largely as a result of tumbling trade values.
Experts say that this December’s movements were more in line with seasonal norms – a sign of ‘robust market dynamics’.
On a year-on-year basis, the final month of 2024 saw average prices drop by 4.1%, which was the smallest decrease seen all year.
Auto Trader says the performance marks a ‘positive trend as we enter 2025’ with December also representing the sixth consecutive month where year-on-year price drops reduced.
When it came to fuel types, the average price of a used petrol car fell 4.1% in December to £14,087 with EVs falling 10.6% compared to the same point last year to reach £26,139.
Meanwhile, days-to-sell fell by three days, with vehicles taking an average of 33 days to leave forecourts.
EVs continued to be the fastest selling fuel type at 28 days, with three-to-five-year-old EVs selling within 24 days on average.
Elsewhere, dealers are being warned to keep on top of pricing data, Auto Trader’s data showing a profit opportunity of almost £30m on under-priced stock in December.
Looking ahead to 2025, the firm expects the used car market to grow from an estimated 7.61m sales in 2024 to around 7.7m this time out.
Commenting, Richard Walker, Auto Trader’s data & insights director, said: ‘There is plenty to be positive about as we enter 2025 with last year ending on the fastest selling December in years and consumer demand appearing resilient.
‘There’s a trend towards more stable pricing, with year-on-year price drops softening, and so we’re seeing pockets in the market where there is missed margin opportunity.
‘As hardening trade prices squeeze profit this will be even more important to address into 2025.
‘The data shows that there is profit opportunity out there for those who use the right tools and information. To unlock success in 2025, ensure your pricing strategy optimises for speed of turn with margin maximisation as a priority.’
