The used car market remains stable, with retail prices rising, vehicles selling at record speeds, and sales volumes increasing, says Auto Trader. Retailers are still urged to utilise available data to unlock more margin in their stock.
The average retail price of a used car rose 1.5% between March and April, the strongest rate of MoM growth since April 2023. April also marked the first time in 19 months that retail prices haven’t contracted YoY, with current values flat.
Marc Palmer, Auto Trader’s head of strategy & insights, said: “The national media may be awash with unsettling headlines, but reassuringly, our data indicates the recent economic and political uncertainty has had little impact on used car buying demand.
“Although the overall health of the market will be welcome news to the industry, retailers continue to face challenges, with margins under increasing pressure.
“In today’s supply-constrained and heavily nuanced market, every vehicle counts, and so I would urge our partners to scrutinise the data to not only source the right stock for your forecourt, but price it correctly and confidently to the market.”
Despite rising confidence, Auto Trader highlights significant margin potential being missed. The data shows there is currently £25 million being left on the table due to in-demand vehicles being priced below market value (£2,820 of margin opportunity per retailer and £390 per vehicle).
Sue Robinson, CEO of the National Franchised Dealers Association (NFDA), said: “It’s encouraging that, despite the political and economic turbulence of recent months, the used car market has remained stable throughout April and going into the second quarter of the year.
“Used cars are leaving forecourts at a record pace, offering a positive outlook for the months ahead. While these indicators are promising, there remains significant margin potential being missed and this is something retailers should closely monitor as we move further into the year.”