The Surge in UK Vehicle Sales: How 5-10 Year Olds Shape the Impact

The UK automotive market is poised for a landmark year in 2025, with projections of 9.6 million new and used vehicle sales — the highest in six years. This includes an estimated 1.98 million new car registrations (SMMT, 2025) and 7.7 million used car transactions (Auto Trader, 2025), a rebound from the 1.61 million new car sales in 2020.  

This growth is heavily influenced by 5 – 10 year old vehicles, which dominate the used market sales numbers. With many of these cars now out of manufacturer warranty, which is generally 3 years or 60,000 miles, this shift brings unique considerations for the average UK driver.  

Let’s look at what this means and what drivers should keep in mind. 

A market driven by older vehicles 

This surge in sales numbers is driven by the September 2025 plate launch boosting new sales and a robust used car sector, with 2,020,990 transactions in Q1 alone. However, 5-  10 year old cars, which comprise a significant portion of the 7.7 million used sales, lead this growth.  

Older vehicles offer savings of around 40% off new prices (Auto Trader, 2025) and stablise values at around £16,774 per vehicle. However, the shift in focus to this older age group means many no longer have a manufacturer warranty in place. Also contributing to this growth is the trend toward electric vehicles, which showed significant growth in Q1, with an increase of 34.6% in new sales and 59% in used sales. 

Impact on the average driver 

For the typical UK driver this shift to 5 – 10 year old vehicles offers opportunities, but also some risks. Without manufacturer warranties in place, drivers face higher repair costs. A not insignificant factor when 89% of repairers have noted rising part prices in 2024 (Motor Ombudsman).  

Also, new car sales are still at 17.9% below pre-COVID levels (SMMT, 2025), keeping new car prices high (an average EV is currently £46,000), pushing more drivers towards older models, intensifying demand and possibly increasing used car prices. 

Key considerations  

1. Extended Warranty: With no manufacturer cover, drivers should consider affordable extended warranties or Mechanical Breakdown Insurance to cover major components. Check FCA-regulated providers and make sure there’s wear-and-tear cover included. 

1. Regular maintenance: Without warranty support, proactive servicing prevents costly breakdowns, critical for aging vehicles and increased parts costs. 

1. Gap Insurance: Protect against depreciation shortfalls if vehicles are written off (consider the 61,343 thefts in 2024 (DVLA)), especially for financed 5 – 10 year vehicles where loan balances may easily exceed market value. 

1. Budget for repairs: Set aside a monthly £50-£100 for out-of-pocket fixes, as 111,120 crashes in 2022 (up 5% from 2021) suggest increased accident risks. 

The predicted increase in vehicles sales, up to 9.6 million for 2025, driven by older cars signals a dynamic market but highlight the lack of manufacturer warranties impacting  running costs. UK drivers should consider prioritising warranty, maintenance, and Gap cover to better manage repair and loss risks. Drivers should be well informed to effectively navigate this changing landscape.