The UK’s Used Car Market So Far

The UK’s Used Car Market So Far 2025 

Affordability: A Primary Driver 

Affordability remains a central factor influencing the UK used car market. With the average price of a used car reaching £16,915 in March 2025, marking a 0.1% month-on-month increase, consumers are increasingly seeking value-for-money options . The market is projected to grow by USD 35.7 billion from 2024 to 2028, at a CAGR of 5.97%, underscoring the strong demand for cost-effective transportation solutions . (The latest on used car prices – Auto Trader Insight, Used Car Market in the UK to grow by USD 35.7 Billion (2024-2028 …) 

The surge in used electric vehicles (EVs) has notably contributed to this trend. In 2024, used EV sales in the UK reached a record 188,382 units, a 57.4% increase from the previous year. This growth is partly due to the decreasing prices of popular models like the Tesla Model 3 and Kia e-Niro, making them more accessible to a broader range of consumers. (UK used electric vehicle sales hit record last year as prices fell) 

Sustainability: The Rise of Used EVs 

Environmental considerations are increasingly influencing consumer choices in the used car market. The demand for used EVs has surged, reflecting a pivotal shift towards sustainability. Factors such as enhanced government incentives, technological advancements in battery longevity, and increased charging infrastructure have driven this growth. (Used Car Market Trends in the UK: October 2024 – Click4Warranty, UK Used Car Market Report- Q4 2024) 

However, the market faces challenges. Some used EV models have experienced significant depreciation, with values dropping by up to 50% in a year. This is attributed to rapid advancements in EV technology and concerns about battery life and charging infrastructure. Despite these issues, the affordability of used EVs continues to attract cost-conscious and environmentally aware buyers. (Dramatic plunge in value of second-hand EVs revealed as prices of popular models including BMW iX3 fall by up to 50%, EVs Are Losing Up to 50 Percent of Their Value in One Year) 

Digital Innovation: Transforming the Buying Experience 

Digital platforms are revolutionizing the used car buying process in the UK. Online marketplaces like Auto Trader have become integral, offering consumers a wide selection of vehicles and transparent pricing. The integration of artificial intelligence (AI) is further enhancing the customer experience, with AI-powered pricing tools and predictive models helping buyers make informed decisions. (Auto Trader Group) 

The shift towards online car buying is also impacting traditional dealerships. For instance, Heycar, a major UK-based used car dealership, is set to close due to mounting financial losses, highlighting the challenges faced by traditional retailers in adapting to the digital landscape. (Used car selling giant with 91,000 motors to close in weeks over ‘heavy losses’ with staff facing axe) 

Outlook: Navigating a Dynamic Market 

The UK used car market is poised for continued growth, driven by affordability, sustainability, and digital innovation. As consumers increasingly prioritise cost-effective and environmentally friendly vehicles, and as digital platforms enhance the buying experience, the market is expected to evolve further. However, stakeholders must remain agile, adapting to technological advancements and shifting consumer preferences to thrive in this dynamic environment. (UK used car market trends 2025: A future of growth and adaptation)