Used automobiles are promoting at a report tempo and costs are persevering with to stabilise to date in 2025, in accordance with the most recent knowledge from Auto Dealer.
Based mostly on over 800,000 day by day observations throughout the entire retail market, Auto Dealer’s Retail Worth Index reveals the common retail value of a used automotive (£16,774) was flat in January on a month-on-month (MoM) and like-for-like foundation; a distinction to the 1.9% decline recorded in January 2024.
And with commerce values not too long ago trending above retail, it’s seemingly costs will strengthen additional over the approaching months because the market adjusts accordingly.
Stability in retail costs is the results of the continued post-Covid squeeze in used automotive provide (down 3.1% year-on-year in January) coupled with buoyant ranges of client demand, as mirrored within the circa 87.1 million cross-platform visits to Auto Dealer final month.
That viewers stage not solely marks a 24.8% improve on December (69.7 million), however the highest variety of visits in a January ever recorded.
It additionally follows the degrees of engagement seen all through 2024, which totalled circa 978 million visits, an increase of seven% YoY.
High 10 used automotive value development (all gasoline sorts) | January 2025 vs January 2024 like-for-like
| Ranks | Make | Mannequin | Jan 25 Common Asking Worth | Worth Change (YoY) | Worth Change (MoM) | |
|---|---|---|---|---|---|---|
| 1 | BMW | X5 | £39,377 | 10.60% | 0.20% | |
| 2 | Porsche | 718 Cayman | £59,248 | 8.30% | 3.90% | |
| 3 | Volkswagen | Touareg | £29,029 | 7.30% | 0.40% | |
| 4 | BMW | M4 | £39,495 | 6.00% | 2.00% | |
| 5 | Mazda | MX-5 | £10,121 | 5.50% | 1.70% | |
| 6 | Toyota | C-HR | £20,954 | 5.50% | 1.30% | |
| 7 | BMW | X4 | £29,260 | 5.40% | -1.10% | |
| 8 | MINI | Countryman | £18,293 | 5.40% | -0.40% | |
| 9 | Suzuki | Swift | £9,601 | 5.10% | 0.10% | |
| 10 | SKODA | Karoq | £19,948 | 4.70% | 0.10% |
Used automobiles promoting at report tempo
The mixture of strong demand, and in lots of circumstances, the pointless under-pricing of inventory, is leading to used automobiles promoting at a report tempo.
In actual fact, it took a median of simply 38 days for a used automotive to promote in January, which is three days sooner than in January 2024 (41 days). It’s additionally the quickest begin to the 12 months since Auto Dealer’s information started in 2019.
With such wholesome ranges of client urge for food out there, the fast turnaround of inventory might be on the potential expense of margin alternative.
Certainly, Auto Dealer’s knowledge reveals that circa 61,000 excessive demand used automobiles are presently being priced under their true market worth, leading to over £24 million in potential margin being missed – the equal of round £3,000 per retailer.
Automotive shopping for confidence stays regardless of financial issues
In line with Auto Dealer’s retail knowledge, demand is translating into gross sales, albeit after a sluggish restart following the top of the festive interval that mixed with a mixture of floods and snow disruptions.
Gross sales efficiency shortly improved over the course of the month although with the ultimate weeks of January recording a robust improve over the identical interval final 12 months.
Because of this, general gross sales in January have been a comparatively flat, down by 1% YoY.
This stable efficiency contrasts with latest uncertainty surrounding the financial system, as mirrored within the steeper than anticipated fall in official client confidence ranges in January.
Though there are potential dangers round inflation and unemployment this 12 months because the Chancellor’s Price range is applied from April – in addition to rising tariff rhetoric from President Trump – there may be trigger for optimism for the months forward, with client spending and actual incomes forecasted to rise in 2025.
However importantly, regardless of the more difficult wider financial background, demand and automotive shopping for confidence stay largely unaffected, with Auto Dealer’s knowledge revealing secure ranges of shoppers’ confidence in affording their subsequent automotive buy.
Certainly, in a research of three,700 market automotive patrons looking on Auto Dealer (carried out in December), 57% agreed they have been ‘rather more assured’ or ‘a bit extra assured’ of their skill to pay for his or her subsequent automotive (35% stated ‘about the identical’). That is up from 47% 12 months earlier.
What’s extra, nearly three quarters of shoppers are nonetheless seeking to buy a automotive within the subsequent six months, which is in keeping with the identical time final 12 months.
As such, Auto Dealer’s 2025 outlook stays constructive, predicting the used automotive market to keep up the sturdy development momentum of the final two years and rise from circa 7.61m gross sales in 2024 to round 7.70m in 2025.
Richard Walker, Auto Dealer’s knowledge & insights director, stated: “Following a really sturdy 2024, the used automotive market continues to indicate its big resilience within the face of broader financial turbulence.
“The 12 months forward will maintain some distinctive challenges for the trade, however our knowledge ought to provide some optimism for 2025 – demand is powerful, costs are secure, and automobiles are leaving forecourts at a report tempo.
“And regardless of some adverse rhetoric, primarily based on the stable market fundamentals we’re monitoring, we don’t see any important or quick menace to client urge for food for used automobiles.”
Walker stated it’s disappointing although for retailer profitability efficiency to see potential margin nonetheless being missed with too many automobiles, together with a few of the most fascinating inventory, being under-priced.
He added: “With so many patrons returning to their subsequent automotive analysis following the festive interval, there is a massive alternative for retailers over the approaching months.
“In addition to making certain your inventory is the place shoppers can discover it, I hope our insights will give retailers the arrogance to cost to the market and safe the margins which are obtainable.”
High 10 used automotive value contraction (all gasoline sorts) | January 2025 vs January 2024 like for like
| Rank | Make | Mannequin | Jan 25 Common Asking Worth | Worth Change (YoY) | Worth Change (MoM) | Worth Change (MoM) |
|---|---|---|---|---|---|---|
| 10 | Nissan | Leaf | £11,459 | -13.60% | -1.70% | 0.20% |
| 9 | Hyundai | ix20 | £6,115 | -14.30% | -1.60% | 3.90% |
| 8 | Hyundai | i40 | £5,791 | -14.40% | -0.20% | 0.40% |
| 7 | Polestar | Polestar 2 | £24,791 | -14.50% | -0.50% | 2.00% |
| 6 | Ford | B-Max | £5,293 | -15.00% | 0.40% | 1.70% |
| 5 | Tesla | Mannequin Y | £31,588 | -16.00% | 0.20% | 1.30% |
| 4 | DS AUTOMOBILES | DS 3 | £6,631 | -16.80% | -2.80% | -1.10% |
| 3 | Ford | Grand C-Max | £6,335 | -17.10% | -0.80% | -0.40% |
| 2 | BMW | iX1 | £35,986 | -17.50% | -0.30% | 0.10% |
| 1 | Vauxhall | Zafira Tourer | £6,097 | -18.70% | -0.70% | 0.10% |
