Drivers purchased more used cars in March as demand for cheaper vehicles outweighs electric vehicle hype

The research found that as inflation marginally softened, demand in the market for used vehicles peaked.

Across the quarter, Auto Trader received over 256.4 million visits to its marketplace, up from 18.7 million in 2023, showing an increase in drivers wanting to purchase reliable vehicles.

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Richard Walker, data and insight director at Auto Trader, said: “Despite an uncertain economic and political backdrop, we’ve seen a positive start to 2024, with demand remaining robust throughout the quarter.

“But while our outlook for the rest of the year is confident, retailers face an incredibly nuanced and complex market which will continue to move at pace.”

From point of purchase to going home with the buyers, used cars took an average of just 25 days to leave retailers’ forecourts last month, which was two days faster than February and three days faster than March last year.

It also marked the fastest monthly pace recorded by Auto Trader.

Auto Trader added: “The outlook for the used car market remains stable but with such nuance in the market.

“It’s important to examine the data at a granular level to not only identify emerging profit opportunities but also potential trends that may affect bottom lines.

“Indeed, while there are variances in supply and demand across different segments of the market, there are certain key cohorts where the dynamics are playing out more dramatically and will need to be monitored carefully.”

The platform detailed how “nearly new” cars (aged below 12 months old) are currently recording high levels of both consumer demand and supply, up 30.4 per cent year-on-year and 42 per cent respectively last month.

However, with manufacturers applying heavy discounts to brand-new cars to stimulate retail demand, particularly for electric vehicles, nearly new models are set to face increasing competition this year.

More manufacturers have been encouraged to create an EV offering for drivers as the UK looks to become net zero by 2035.

To help more consumers make the switch, the Government introduced several schemes to lower the upfront and running costs of owning an EV.

This includes a plug-in van grant of up to £2,500 for small vans and £5,000 for large vans until at least 2025 and £350 off the cost of homeplace charge points for people living in flats.

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Jakob Pfaudler, CEO of the AA, said: “Our customers want to see both Government action and realism in the move to electric vehicles as part of an ambitious drive to net zero.

“This means having certainty and a combination of the right information, infrastructure and incentives available to them.”