Auto Trader's Call to Retailers: Use Data to Unlock Greater Margins

Casual man in AutoTrader office, used car market data analysis

The Data-Driven Shift in the Used Car Market

The landscape of the used car market is evolving, and Auto Trader is at the forefront of this transformation. With retail prices on the rise, Auto Trader emphasizes the importance of data analysis for retailers aiming to enhance their profit margins. Between March and April 2025, the average retail price of used cars increased by 1.5%, signaling a noteworthy rebound. This uptick marks a significant moment, as for the first time in nearly two years, retail prices did not decline year on year, showing that consumer confidence is resilient despite economic uncertainties.

Unlocking Margin Potential Through Insight

Marc Palmer, Auto Trader’s head of strategy & insights, underlines that even amidst the turbulence seen in national headlines, demand for used cars remains robust. However, many retailers are leaving a substantial amount of money on the table—an estimated £25 million—by pricing in-demand vehicles below market value. This equates to a missed opportunity of about £2,820 per dealership and £390 on each vehicle. Palmer urges retailers to lean into their data not only to find the best vehicles for their lots but also to price them appropriately. In a market constrained by supply, every sale matters.

Adapting to a Dynamic Market

According to Sue Robinson, CEO of the National Franchised Dealers Association, the current stability of the used car market, despite broader economic pressures, should be a source of optimism for retailers. Cars are flying off forecourts at record speeds, a trend that offers hope for profitability in the months to come. Retailers must adapt and closely monitor their margins as they prepare for a competitive landscape. With actionable insights at their fingertips, there’s a significant opportunity to harness data to drive sales and margins effectively.

As the market changes, staying informed is key to staying competitive. Auto Trader’s insights could be the catalyst that helps retailers maximize their potential in this booming yet challenging environment.

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