Used car prices rise at fastest rate in three years as EV demand surges

Used car prices in the UK climbed to their highest annual rate in nearly three years in May, with the average price hitting £17,306—a 0.7% increase from the previous year, according to Autotrader’s Retail Price Index. The rise reflects persistent demand outpacing supply, as used car stock fell 6.6% year-on-year while consumer interest remained strong, with 83.7 million platform visits and 3.7 million monthly active users recorded in May. Demand for used electric vehicles (EVs) surged 36.4% annually, though supply dropped 11.2%, creating a tighter market. Used EVs sold in an average of 24 days—five days faster than petrol cars and 12 days quicker than May 2025—while prices stabilized for the first time in 40 months, ending a prolonged decline. The 3-5-year-old EV segment accounted for 48% of inquiries and remains the fastest-selling age category. Older vehicles, particularly those aged 10-15 years, saw the strongest price growth, rising 8.3% to £7,213, offering retailers record profit margins. Autotrader forecasts that one in five UK cars under five years old will be electric by 2026, driven by rising fuel costs and shifting consumer preferences. The data highlights a market where supply constraints and strong demand benefit retailers, with faster stock turnover and stabilized EV pricing. Marc Palmer, head of strategy at Autotrader, noted that buyers are prioritizing EVs amid economic concerns, while older vehicles deliver sustained profitability due to limited availability.