Retail Price Index | October 2024

• Month-on-month prices rise 1%, up vs -0.2 in October 2023
• The average price of a used car was £16,408 in October; down -7.4% YoY the lowest annual decline since December 2023
• Used BEV demand firms further with prices increasing (2.1% MoM) for first time since 2022
• Overall demand remains strong as Auto Trader records over 80 million visits in October, up 9.5% YoY.

1st November 2024, London - The used car market is set to finish 2024 in strong shape according to the latest data from the Auto Trader Retail Price Index.

Auto Trader assesses over 800,000 daily pricing observations from across the whole retail market. It shows that the average price of a used car last month was £16,408, down -7.4% year-on-year (YoY) on a like-for-like basis but the lowest annual decline since December 2023.

Month-on-month, the market has risen 1% which is up from October 2023 (-0.2%) but not quite back to pre-pandemic averages which hovered around the 1.9% mark.

The market performance is being fuelled by the sustained levels of consumer demand, combined with the ongoing constraints in used car supply. In fact, whilst YoY supply was down -5.6% in October, Auto Trader's data showed that demand on its platform had risen strongly for the fourth consecutive month, increasing 9.9% YoY.

Auto Trader's market health indicator increased by 16.4% YoY as demand outpaced supply and cars sold faster, taking on average 29 days to leave forecourts in October, three days quicker than the same month last year. Due to these healthy market dynamics, retailers are pricing more confidently than at this time last year, when they were spooked into bigger reductions by price cuts in the wholesale market as some trade buyers were reluctant to source stock.

The October figures show the average price of a used petrol car showing the smallest decline, down -6.4% YoY at £14,699, diesels down -7.1% at £14,066 and electric vehicles priced 13.4% lower at £26,819. The typical plug-in hybrid is down 12.5% year-on-year at £30,834. These prior year comparisons are all negative given the trade price induced fall in retail values seen last winter.

Used electric cars performed well in October too with used BEV prices rising (2.1%) MoM for the first time in two years, likely due to sustained demand throughout the year, renewing retailer confidence in the second-hand electric market. Speed of sale for the 3-5 year old electric segment sits at an impressive 19 days, one day faster than September and the fastest across all segments.

"It's good to see retailers showing more confident pricing trends and following the supply and demand data, helping 2024 end on a far stronger note than 2023. Last year, many retailers were unnerved by largely unwarranted price cuts in the wholesale market but thankfully today's levels of demand, combined with continuing tightness of supply, mean that we haven't seen that pattern repeated this year.

Solid market health indicators in the used electric market are a bright spot as we see overall BEV prices up month on month. The 3-5 year old EV segment continues to lead the overall market in selling faster than all others. We're hopeful that as retailer confidence continues to grow in the second-hand electric segment, more and more will be ready to get involved and - as with all segments of the market - we'd urge all retailers to use data to make informed electric stocking decisions."