UK Trends in 2025: New Car Sales vs Used Car Sales

The UK automotive market in 2025 is showing an interesting play between new and used car sales, influenced by the economic conditions, consumer preferences, and regulatory pressures. While new car registrations are showing a degree of growth, used car sales continue to thrive. These trends indicate a growing focus on affordability, sustainability, and electric vehicles.  

Here, we’ll explore the key trends in new and used car sales in the UK for 2025, using the latest data and insights. 

New Car Sales: Steady Growth with some Challenges 

The UK new car market has seen a mixed performance in 2025 so far, with growth in some months but overall, still lagging behind pre-pandemic levels. According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations rose by 6.7% in June 2025, reaching 191,316 units, which is the strongest June result since 2019.  

Year-to-date sales for the first six months of 2025 were up 3.5%, totalling around 1.04 million registrations. However, the market is still 17.9% below pre-COVID levels, indicating a slow recovery. 

Key Trends in New Car Sales 

• Electric vehicle surge: Battery electric vehicles (BEVs) have been a bright light, with sales rising 34.6% in the first half of 2025, comprising 21.6% of new car registrations (224,838 units). In June, one in four new cars sold was electric, driven by the Zero Emission Vehicle (ZEV) mandate, which requires 28% of sales to be fully electric in 2025. Plug-in hybrids (PHEVs) and hybrids (HEVs) also saw strong growth, with PHEV registrations up 50.8% and HEVs up 6.8% in May 2025. 

• Decline in traditional fuels: Petrol car sales fell by 4.2% in June 2025, holding a 46% market share, while diesel sales remained flat at just 5.6%. This reflects a broader shift away from internal combustion engine (ICE) vehicles, influenced by environmental regulations and consumer demand for low-emission options. 

• Fleet-driven growth: Fleet sales have been a significant driver, increasing by 8.5% in June 2025 (114,841 units), while private buyer sales grew at 5.9% (71,616 units). However, private buyer interest dipped in May, suggesting economic pressures like the cost-of-living crisis are impacting retail demand in the vehicle market. 

• Top models and brands: The Ford Puma was a fore runner in the UK’s new car sales in 2024 (48,340 units), however, Volkswagen remained the top-selling brand with 166,304 registrations. In 2025 top sellers include the Nissan Qashqai, Tesla Model Y, and Vauxhall Corsa.  

Challenges 

Despite this growth, the new car market faces numerous hurdles. Manufacturers are offering discounts, particularly on EVs, to meet ZEV targets, but these are unsustainable in the longer-term. Geopolitical issues, such as US tariffs, have also impacted production, with UK car output dropping to its lowest May level since 1949. Additionally, new car prices remain high due to supply chain recovery, pushing some buyers towards the used market. 

Used Car Sales: Resilience and Record Demand 

The used car market has shown remarkable stability and growth, outperforming new car sales in volume and resilience. In 2024, there were 7.6 million used car transactions, which is a 5.5% increase year-on-year. Early 2025 data indicates that this trend will continue.  

The first quarter of 2025 saw 2,020,990 used car sales, a 2.7% rise and the first time Q1 sales exceeded two million since pre-COVID 2019. Auto Trader forecasts used car sales to reach 7.7 million in 2025, coming close to pre-pandemic levels for the first time. 

Key Trends in Used Car Sales 

• Affordability driving demand: With new car prices at record highs, used cars are an attractive alternative that offers good value. On average buyers will save around 40% compared to new vehicle prices, while still providing up to date technology and safety features. The nearly-new segment (0–3 years) is particularly popular, with 65% of potential new car buyers considering nearly-new options. 

• Electric vehicles gaining ground: Used BEV sales surged by 59% in Q1 2025 (65,850 units), achieving a 3.3% market share. Hybrids and PHEVs also saw record growth, with 98,830 amounting to 30% growth and 23,540 transactions, which is an increase of 14% year-on-year. However, ICE vehicles (petrol and diesel) still dominate, accounting for 90.5% of used car sales. 

• Stable prices and fast turnover: Used car prices remain stable, with an average retail price of £16,774 achieved in early 2025. Automatic valuation models (AVMs) have improved the accuracy of vehicle pricing by 12%, which ash resulted in reducing the number of days to sale by 18% for vehicles under £20,000. Hybrids, especially in urban areas, sell quickly, averaging 21 days compared to 35 days for petrol cars. 

• Regional variations: The south-east led in transaction volume (289,011 in Q1 2024), while London saw a 5.1% increase in used car sales in 2025, reflecting varying regional economic conditions and stock availability. 

Challenges 

Supply constraints persist, particularly for 3–5-year-old cars, which have dropped 37% since 2019 due to reduced new car sales during the pandemic. This scarcity means pricing remains competitive but limits stock availability. Additionally, while used EV sales are growing, their market share remains low at 3.3%, partly due to infrastructure concerns like limited charging networks in rural areas. 

New vs Used: A Comparative Perspective 

• Volume: Used car sales are projected at 7.7 million in 2025, dwarfing the estimated 1.98 million new car registrations, driven by affordability amid economic uncertainty. 

• Fuel type trends: New cars lead EV adoption (21.6% vs 3.3% for used), while used buyers prefer petrol (51.54%) or hybrids due to cost and infrastructure. 

• Buyer behaviour: Fleet purchases dominate new sales, while used cars thrive on retail demand, with 87.1 million online marketplace visits in January 2025. 

• Market dynamics: New car sales face volatility from supply issues, while used sales benefit from stable prices and high demand. 

Implications for Buyers and Sellers 

• For buyers: Opt for nearly new hybrids for value or used EVs in urban areas with charging access. Explore finance deals to maximise savings. 

• For sellers: Use digital tools like AVMs to refine pricing and target high-demand segments (hybrids, nearly new). Highlight battery health and service records for EVs. 

Conclusion 

In 2025, the UK car market pits a modestly growing new car sector against a robust used car market. Electrification unites both, with EVs and hybrids gaining ground, though used sales lead in volume and stability. As the ZEV mandate and economic factors shape decisions, staying informed via sources like SMMT (www.smmt.co.uk) or Auto Trader (plc.autotrader.co.uk) will help buyers and sellers thrive in this evolving landscape.