Used cars selling faster in November amid strong demand in UK #UKFinance

The latest insights from the Auto Trader’s Retail Price Index indicate that the UK used cars are selling two days faster in November 2024 than in the previous year.

These cars are selling two days faster than in the previous year, taking 31 days to leave forecourts.

This acceleration in sales pace reflects solid demand and enhancing pricing trends in the motor finance sector.

The average price of a used car in November was £16,492 ($21,005). This represents a month-on-month decrease of 0.6% compared to October.

However, November marks the fifth consecutive month of year-on-year pricing improvements, indicating a resilient retail demand.

Electric vehicles (EVs) are selling even more quickly, with an average of 28 days on the market.

Notably, EVs aged three to five years are selling within an average of 22 days.

The report also highlights the ongoing constraints in certain segments of the used car supply, with stock levels down by 6.6% last month.

Despite this, year-on-year demand has increased by 5.5%, resulting in a market health improvement of 13% compared to the previous year.

Breaking down by fuel type, the average price of used petrol cars decreased by 4.7% to £14,710, diesel vehicles saw a 5.8% drop to £14,077, and electric vehicles experienced an 11.7% reduction to £26,390.

Plug-in hybrids also recorded a 10.5% year-on-year price decline, averaging £30,598.

Looking ahead, Auto Trader’s forecasts predict that the used car market will continue its strong growth trajectory from an estimated 7.61 million sales this year to approximately 7.70 million in 2025.

Auto Trader data and insight director Richard Walker said: “November is continuing the trend of a strong finish to 2024. Last year, many retailers followed the wholesale market in dropping prices sharply with a strong and somewhat unnecessary impact on retail values and profits. But buying confidence, as well as retail pricing, has steadied this year, as shown by the more typical price movements we’re reporting in recent months.”

“Used cars selling faster in November amid strong demand in UK” was originally created and published by Motor Finance Online, a GlobalData owned brand.

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