These types of secondhand cars are in high demand in the UK: Auto Trader
Online car marketplace Auto Trader has published its financial results for the year ending 31 March 2025, with the group reporting strong fundamentals.
Group revenue increased 5%, exceeding £600 million in the period, while Group operating profit increased 8% and basic earnings per share (EPS) increased 12%. Retailer revenue grew at 7%, with the number of retailer forecourts increasing 2% year-on-year.
Auto Trader noted that it now has a strong competitive position, with a record number of both buyers and sellers using the platform. It estimates that it is now more than ten times larger than its nearest competitor.
The group also launched Co-Driver, a suite of AI-enabled features, which supports retailers to create high-quality adverts more efficiently, while significantly improving the experience for car buyers. This has led to consistently high levels of engagement from customers using this product since its launch.
Secondhand car market
Auto Trader said it continues to see strong levels of demand for used cars, with a record number of cross-platform visits and minutes spent on its platform
Notably, the secondhand market has proven so strong over the last year that it has struggled to find supply for certain types of cars, it said.
“As we have moved through the year, supply has remained constrained for vehicles aged 3 to 5 years old. This combination of high demand and restricted supply in key age cohorts has led to cars selling at a faster rate than at any time in our recent history,” it said.
“We have seen a 5% increase in the number of cars advertised through Auto Trader, which is slightly higher than the increase in overall used car transactions. Fast speed of sale has meant retailers have benefited from increased utilisation of Auto Trader’s slot-based advertising model. As a result, even though consumer and retailer activity have both increased, it has not directly benefited revenue.”
The group added that used car pricing has been stable over the last 12 months, following declines in the previous financial year.
“The new car market has grown over the past 12 months, driven by the fleet channel. This took share from the retail channel, which declined 4% year-on-year. This calendar year new car sales are up 3%, and retail volumes were the fastest growing channel growing 6%,” it said.
“With the announcement of a UK/US trade deal and the Government’s plans to soften the Zero Emission Vehicle (‘ZEV’) mandate, we expect overall new car registration volumes to be well supported over the next two to three years.”
