1:07 pm, September 5, 2025
Used car prices saw a modest rise last month, which was the first year-on-year increase since August 2023.
This is according to the latest data from Auto Trader, who report that the average price of a used car was £16,777, up 0.4%.
The market has had four years of flat price change but the latest uptick it says is due to strong market conditions, with older cars seeing especially high demand.
Those cars aged five to 10 years saw prices rise 1.4% year-on-year to £13,619 on average, while 10 to 15 year old cars were up 6.5% to an average of £6,580.
However, younger cars saw record annual price decreases as supply rose sharper than demand in August. Cars that were less than 12 months old were down by 1.5% and one to three year old models were down 2%.
This surge in demand for older vehicles was felt at used car dealerships, according to Auto Trader who reported a 3.4% annual rise in sales. Meanwhile, franchise dealers saw a decline of 3.1% due to supply challenges and younger stock.
Auto Trader adds that the electric vehicle market has seen retail prices stabilise, although supply was up 42.2% in August while demand was slightly less – up 31.3%. The average price of an EV was up 0.4% month-on-month but down 4.3% year-on-year.
Marc Palmer, head of strategy and insights at Autotrader, said: ‘As we’ve seen throughout 2025, the used car market continues to demonstrate real resilience, with strong consumer demand, swift sales, and robust market fundamentals which has led to the first year-on-year price growth in two years.
‘This renewed momentum should inspire confidence among retailers as we move into the latter part of 2025. However, the market remains highly nuanced, with ongoing supply challenges and varying performance across different vehicle segments.
‘Although franchise businesses are currently feeling the squeeze in the middle of the market, we expect that to begin easing off over the coming months as the post-Covid shortfall continues to flow up through the parc. In this evolving landscape, having access to timely, granular data is crucial, to source, price, and market stock effectively and to stay ahead.’
The MX-5 proved it was the ideal summer car in August as it’s price increased the most year-on-year, up 13.6% to £11,853 on average. You can see the top 10 highest climbers and biggest declines last month in the tables below.
Top 10 used car price growth – August 2025 vs August 2024 (All fuel types)
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Mazda MX-5 – £11,853 (+13.6% YoY)
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Audi RS6 Avant – £62,931 (+11.7% YoY)
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Volkswagen Beetle – £7,357 (+11.1% YoY)
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BMW 1 Series – £16,271 (+10.4% YoY)
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BMW M4 – £41,521 (+10.2% YoY)
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Mercedes-Benz M Class – £10,564 (+9.7% YoY)
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Land Rover Freelander 2 – £6,957 (+9.1% YoY)
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Audi A3 Cabriolet – £8,793 (+8.7% YoY)
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Lexus IS – £9,908 (+8.4% YoY)
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Jaguar XJ – £12,776 (+8.1% YoY)
Top 10 used car price contraction – August 2025 vs August 2024 (All Fuel Types)
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Tesla Model Y – £27,656 (-19.2% YoY)
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Vauxhall Viva – £5,230 (-16.6% YoY)
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MG MG4 – £17,511 (-16.5% YoY)
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BMW 2 Series Gran Tourer – £11,018 (-14.9% YoY)
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Volkswagen ID.4 – £22,456 (-14.6% YoY)
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Ford Grand C-Max – £5,670 (-12.4% YoY)
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Peugeot 5008 – £17,968 (-11.7% YoY)
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Vauxhall Mokka X – £8,464 (-11.1% YoY)
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Mercedes-Benz EQA – £23,940 (-10.9% YoY)
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Ford Ka+ – £7,104 (-10.6% YoY)
