Average used car prices in the UK have started to fall over the last few months while demand remains “strong” for second-hand models, according to data from AutoTrader.
Richard Walker, Auto Trader’s Director of Data & Insights, stressed stock was “selling quickly” with “promising signs” costs were beginning to fall.
It suggests road users were not yet ditching their petrol and diesel cars despite the rising cost of motoring across the UK.
The warning comes after experts suggested rising VED rates, sky-high car insurance costs and costly fuel prices were forcing many to give up their vehicles.
Richard said: “Across the market overall, although we’re seeing signs of used car prices stabilising, they’ve softened over the last few months, largely fuelled by trends in the wholesale market and a gradual easing in supply constraints.
“The underlying health of the used car market remains robust, however – demand is strong, stock is selling quickly, and more cars were sold in February than last year.
“With promising signs of pressure beginning to ease on consumers slightly, we expect healthy used car demand to continue over the months ahead, which should help prices to stabilise even further.”
Recent findings from AutoTrader’s data shows the widespread appeal for combustion models compared to EVs.
Statistics show petrol cars are currently selling at a quicker pace than any other fuel type, taking an average of 25 days to leave dealerships compared to 28 for diesel and 32 for electric.
However, the supply of used electric vehicles aged below five years old is up four percent year-on-year, whilst petrol and diesel are down 9.3 percent and 31.5 percent.
The latest findings show that the SEAT Leon is currently the UK’s fastest-selling used car.
The Spanish hatchback takes an average of just 10 days to leave retailers’ forecourts with the petrol plug-in version the most in demand.
Another EV, the Tesla Model Y is seventh on the list taking just 12 days to be sold by dealerships.
However, the rest of the top 10 were dominated by Internal Combustion Engine (ICE) models.
The petrol Vauxhall Crossland is currently the second fastest used car to sell with dealerships making the sale within just 10.5 days on average.
Richard added: “The speed in which used cars are selling is a good barometer of health in the market, so it’s reassuring to see that stock is continuing to turn quickly.
“We may see some slight movement by the end of the month, but at this mid-way point, we’re seeing used cars shift at near record levels.”
