As of March 2022, sport utility vehicles were the most expensive vehicle type in the United Kingdom, costing on average just over ****** British pounds. In contrast, city cars were more affordable, with prices averaging ****** British pounds.

Used convertibles recorded the steepest price inflation in the United Kingdom between October 2021 and October 2022, reaching an average selling price of around ****** British pounds. In contrast, the price of hatchbacks had on average decreased, down to ****** British pounds. This made Hatchbacks not only the only car segment decreasing in prices but also the cheapest body type in the UK as of October 2022..

This statistic shows the Consumer Price Index (CPI) for new car purchases in the United Kingdom (UK) as an annual average from 2008 to 2024, where the year 2015 equals 100. In 2024, the annual average price index value of new car purchases was measured at *****, the highest recorded over the period in consideration.

This statistic shows the Consumer Price Index (CPI) of second hand car purchases in the United Kingdom (UK) as an annual average from 2008 to 2023, where the year 2015 equals 100. In 2023 the annual average price index value of second hand car purchases was measured at *****.

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UK Used Car Market Size 2025-2029

The uk used car market size is forecast to increase by USD 39.5 billion, at a CAGR of 6.2% between 2024 and 2029.

The Used Car Market in the UK is driven by the excellent value for money proposition that pre-owned vehicles offer, making them an attractive alternative to new cars for many consumers. Another significant trend shaping the market is the increasing preference for car subscription services, which provide flexibility and convenience for customers. However, the market also faces challenges, including the growing importance of digital touchpoints in the car buying process and the need for dealers to adapt and improve their online presence. Additionally, the rise of car subscription services poses a threat to traditional dealership models, requiring dealers to explore new business models and revenue streams to remain competitive. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on enhancing their digital presence, offering flexible and convenient purchasing options, and exploring partnerships with car subscription services.

What will be the size of the UK Used Car Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The used car market in the UK is influenced by various factors, including the exterior and interior condition of the vehicles, financial history, economic trends, and consumer demand. Financially sound buyers prefer cars with well-maintained exteriors and interiors, ensuring lower car ownership costs in the long run. Economic trends, such as inflation and interest rates, impact car financing options and vehicle affordability. Maintaining a vehicle's fuel consumption within acceptable limits and adhering to the vehicle maintenance schedule is crucial for reliable performance and resale value. Financial institutions consider a vehicle's title, accident history, and service records when assessing car financing options. Emerging technologies, such as electric vehicles and autonomous driving, are transforming the industry, while insurance coverage, safety ratings, and vehicle age & mileage remain essential factors in consumer decision-making. Previous owners, engine size & type, transmission options, and vehicle features & equipment also influence consumer preferences. Car repair costs, loan terms, car financing options, and industry innovations contribute to market volatility. Registration documents, vehicle history records, and insurance coverage are essential for transparency and trust. Understanding the impact of these factors on car ownership costs is crucial for businesses operating in the UK used car market.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ChannelOrganizedUnorganizedVehicle TypeCompact carSUVMid sizeSales ChannelDealershipsOnline PlatformsPrivate SalesFuel TypePetrolDieselHybridElectricGeographyEuropeUK

By Channel Insights

The organized segment is estimated to witness significant growth during the forecast period.

The used car market in the UK is characterized by various entities that influence its dynamics and trends. Depreciation and car insurance premiums are significant factors that impact the affordability of used cars. Safety features, a priority for consumers, are increasingly being incorporated into used vehicles through refinishing and upgrades. Car rental companies offer flexible mobility solutions, while automotive technology advances drive the adoption of vehicle diagnostics and digital car retailing. Used car dealerships and online marketplaces facilitate transactions with vehicle inspections, mileage verification, and consumer reviews. Sustainable transportation initiatives and online payment systems are shaping the market, as are car leasing agreements, price elasticity, and inflation rates. Fuel efficiency, car finance options, and driving assistance systems are key considerations for buyers. Government incentives and emissions standards influence consumer spending patterns, with a growing interest in alternative fuel vehicles and hybrid car technology. Fleet management services and car maintenance costs are essential services for businesses and individuals alike. Industry regulations and consumer protection laws ensure transparency and trust in the market. Used car warranty, customer satisfaction ratings, and brand reputation are crucial factors for buyers. The market share dynamics of organized companies, including dealership chains, online marketplaces, and OEM-affiliated dealerships, are shaped by their ability to provide guarantees, technical expertise, and

In March 2025, the average passenger car import price amounted to $31,372 per unit, with an increase of 9.4% against the previous month.

This statistic records the difference in the average price of a used car in different cities across the United Kingdom (UK), expressed as a percentage of the average* used car price across the country. The chart shows that Plymouth is the most expensive of these British cities in which to buy a used car, costing about **** percent more than the national average.

UK Car Loan Market size was valued at USD 66.98 Billion in 2024 and is projected to reach USD 116.81 Billion by 2032, growing at a CAGR of 7.2% from 2026 to 2032.

Key Market Drivers

Rising Vehicle Prices: Rising vehicle prices are driving the UK Car Loan Market, as higher costs encourage more consumers to pursue financing solutions. According to the Office for National Statistics (ONS), the price of new cars in the UK has risen by 28% since 2020, above normal inflation. Furthermore, estimates from the Society of Motor Manufacturers and Traders (SMMT) show that the average new car price in 2024 will be £38,800, making upfront purchases increasingly difficult for customers. more consumers are depending on car loans, hire purchase (HP), and personal contract purchase (PCP) programs to finance their vehicles, which is supporting industry expansion.

Switzerland had the highest price tags on new passenger cars sold in 2020, overtaking Norway for the first time in five years. Swiss people had to dig deeper into their pockets than any of their European neighbors, with prices roughly 15,000 euros higher than the EU-28 average. Reasons for automobiles being so costly in Switzerland are partly due to tax rates, which are set by each canton based on a set of varying criteria including but not limited to vehicle weight, powertrain, and CO2 emissions. These incentives contribute to making larger, heavier vehicles using petrol and diesel engines more expensive. The only vehicles exempt from taxes in selected cantons were electric cars. Electric vehicles are extremely popular in Norway, second in the ranking in terms of average vehicle price, in parts due to the VAT and tolls exemptions for electric vehicles in the country. Norwegian buyers are able to spend more on high-tech models.

Car tax rates in Nordic countries higher on average
Other European countries with a 25 percent tax rate on acquisition are Croatia, Denmark and Sweden, while those in Hungary even exceeded Norwegian rates by two percent. As seen in this statistic higher tax rates on passenger cars translates to higher prices overall. Sweden and Denmark both appeared in the top seven most expensive car buying countries. Hence, in terms of volume of new car registrations, Northern European countries trailed behind not only their more populous neighbors, but also other smaller countries where tax rates were lower.

Prices for passenger cars to stay stable
Prices for passenger cars were forecast to stay relatively stable in the next three years, with only slight increases expected. Luxury cars were the only group where price change was estimated to be more prominent.

The UK passenger car market expanded slightly to $54.3B in 2024, picking up by 2.5% against the previous year. The market value increased at an average annual rate of +4.2% over the period from 2012 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Passenger car consumption peaked in 2024 and is likely to see gradual growth in the near future.

A lack of investment has pushed the UK Motor Vehicle Manufacturing industry into decline in 2020-21. Engine production is inching downwards as the industry struggles to attract investment due to higher EU production and multinationals seeking to be part of an integrated EU supply chain to reduce costs. The pandemic deepened the industry's troubles – output dropped by 29.3% in 2020, according to the Society of Motor Manufacturers and Traders – and recovery has been challenging. Motor vehicle producers have also been plagued by semiconductor shortages and supply chain issues, which have elevated production costs, squeezing their returns. Petrol and diesel vehicle output is falling and carmakers have shifted their focus to electric vehicles, breathing new life into the automotive sector. Car makers’ revenue is forecast to rise at a compound annual rate of 6.7% over the five years through 2025-26 to £73.9 billion, including a revenue drop of 1.5% in 2025-26, when the average profit margin will be 5.4%. This represents an expansion over the five years through 2025-26 as steel and input prices drop.

There’s a glimmer of hope – hybrid and pure electric vehicle sales are rising, both at home and abroad, pushing output at factories. Output climbed in 2023, driven by a resurgence in exports of electric and hybrid cars to the EU. Manufacturers produced 905,117 car units in 2023. However, output dropped to 779,584 units in 2024 because of the transition to electric vehicles. Manufacturers are passing on higher production costs and luxury vehicle sales are driving profit. Production is set to remain high in 2025 and most car makers passing on higher prices is set to limit revenue decline.

To plot a path to recovery, car manufacturers will focus on making alternatively fuelled vehicles (AFVs) in response to the UK’s ban on selling new petrol and diesel vehicles in 2035. However, demand for AFVs is currently weak, threatening the industry’s growth potential. Some carmakers are questioning their future in the UK unless the government does more to drive up demand for electric vehicles. The government has poured more money into building electric charge points to boost uptake, but has withdrawn subsidies for buying electric cars. Still, electric vehicles are likely to dominate the market in the long term, as public and private efforts are increasingly focused on net-zero policies. Revenue is expected to expand at a compound annual growth rate of 1.4% over the five years through 2030-31, reaching £79.3 billion.

Amid the cost of living crisis, the average used vehicle prices in the United Kingdom had increased across auto dealer types between September and October 2022, with franchised dealerships reporting the steepest growth at *** percent. While prices at independent dealers also rose, their growth was slower than at their franchised dealers and car supermarket counterparts.

A dataset of vehicle MPG ratings and fuel cost calculations based on manufacturer, model, and fuel type.

UK car parts wholesalers have faced weak car production – vehicle output falling by 13.9% in 2024. This slowdown has reduced orders for original manufacturer parts. However, rising sales of used cars and an ageing vehicle fleet (with the average vehicle age at 9.4 years) have expanded replacement and repair component sales. Spare part prices have soared, demonstrated by car insurance premiums jumping 82% between 2021 and 2024, translating into higher revenue for wholesalers. Moreover, the market shift towards electric vehicles (EVs), with EV registrations up 16.7% in 2024, means wholesalers face lower demand for traditional engine components but gain opportunities supplying EV-specific parts such as batteries, charging equipment and power electronics. Buyer power is fairly high due to strong competition among parts suppliers, while barriers to entry are moderate because of the capital requirements and specialised technical expertise needed in this industry. That’s why revenue is projected to hike at a compound annual rate of 2.8% to £22.4 billion over the five years through 2025-26, with an expected hike of 1.8% in 2025-26. Revenue is forecast to expand at a compound annual rate of 3.6% to £26.7 billion over the five years through 2030-31. The expanding UK car fleet is driving steady growth in the UK car parts market. Total car sales are forecast to rise by 3.3% to above two million units by 2026, raising long-term demand for replacement parts as vehicles age. Used cars will likely remain popular, raising the average vehicle age on UK roads and boosting ongoing demand for servicing and replacement components for older models. EVs will also form a larger portion of the market. The SMMT expects battery-electric cars alone to make up about 28.3% of total sales by 2026, alongside continued growth in hybrid sales. Government support is helping accelerate this shift – with over £2 billion earmarked from 2024 to expand charging infrastructure. This opens new opportunities for wholesalers to supply higher-value EV-specific parts like batteries, cables and charging gear. However, challenges remain as larger retailers increasingly bypass traditional wholesale channels, pushing wholesalers to diversify their product lines to protect profit.

In March 2025, the average passenger car tyre import price amounted to $49.7 per unit, declining by -1.5% against the previous month.

Dataset showing minimum daily prices, average user ratings, and total number of reviews for the top car rental companies in The United Kingdom, collected over the past year.

Background information to the data presented in the Transport Statistics Greater Manchester reports. Includes tables on: Retail Price Index (all items) 1987-Q3 2014 The cost of fuel per litre 1991-2014 Public transport peak fares for average journeys 1991-2014 Public transport off-peak fares for average journeys 1991-2014 Public car parks in key centres 2003-2014/15 Number of spaces available in public car parks in key centres 2003-2015 Average prices in public car parks in key centres 2003-2015 Usual method of transport to work by region of workplace - Metropolitan Areas 2005-2014 Time taken to travel to work by region of workplace - Metropolitan Areas 2005-2014 Average time taken to travel to work (minutes) by mode 2005-2014 Trips per person per year by main mode of travel - Metropolitan Areas 2003-2014 Average distance travelled by main mode of travel - Metropolitan Areas 2003-2014 Average number of trips per person per year by purpose - Metropolitan Areas 2003-2014 Trips to and from school by main mode and region of residence - Metropolitan Areas 2003-2014 Motor vehicles (thousands) licensed by taxation class - Metropolitan Areas 2007-2014 Mean gross full time weekly earnings - Metropolitan Areas 1999-2014 Air transport statistics - comparisons of Manchester and UK trends 1995-2014 Road lengths in Greater Manchester (kilometres) 2004-2014 The Registrar General's mid-year estimates of population (thousands) Indices of population change Household estimates and projections by district, Greater Manchester 1981-2033 (Thousands) Total capital provision to individual districts 2000/1 to 2013/14 £ million Greater Manchester LTP Settlement 2002/3-2013/14 Highway Schemes over £1 million completed 1986-2014 Major public transport schemes over £5 million completed 1993-2013 Car Ownership numbers 2011 census Car ownership percentage by district 2011 census Car ownership summary 2011 census Economic position 2011 census Mode split to work 2011 census Mode split to work by district 2011 census.

The United Kingdom motor insurance market, valued at £23.44 billion in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.16% from 2025 to 2033. This growth is driven by several factors. Rising vehicle ownership, particularly within younger demographics embracing personal mobility, fuels demand for insurance coverage. Furthermore, increasingly stringent government regulations regarding minimum insurance coverage and liability are bolstering market expansion. Technological advancements, such as telematics and usage-based insurance, are also shaping the market by offering customized pricing models and enhanced risk assessment capabilities. The market is segmented by product type (Third-Party, Third-Party Fire & Theft, Comprehensive) and distribution channel (Direct, Agency, Banks, Others). The competitive landscape includes major players like Aviva, Prudential, Zurich, AXA, and Allianz, among others, each vying for market share through innovative product offerings and strategic partnerships. However, the market also faces certain restraints. Fluctuating fuel prices and economic uncertainties can impact consumer spending on insurance premiums. Increased claims frequency and severity, potentially driven by factors like increased urbanization and road congestion, put pressure on insurers' profitability. Intense competition among established players and the emergence of new digital insurers further complicate the market dynamics. Despite these challenges, the long-term outlook remains positive, driven by continued vehicle sales and the adaptation of insurance providers to technological innovations and evolving customer needs. The focus will likely be on personalized pricing, risk mitigation through data analytics, and enhanced customer service experiences to maintain a competitive edge. Recent developments include: Feb 2022: For an initial payment of GBP 47.5 million, AXA UK&I purchased the renewal rights to Ageas UK's commercial operations. This acquisition reinforces AXA's growth strategy and dedication to its commercial business clients and broker alliances, particularly in the SME and Schemes market sectors. About 100 Ageas UK personnel will transfer to AXA Commercial as part of the arrangement to provide continued support and service delivery., Jan 2022: The cost of a comprehensive car insurance policy in Britain is expected to be volatile this year after rising 5% in the final quarter of 2021 as more drivers took to the roads to ease COVID-19 curbs. Motorists must pay GBP 539 (USD 734.06) on average for their comprehensive car insurance premiums.. Notable trends are: High Volatility in Car Insurance Premiums During the Past Few Years.

This table contains values from Compare.com's proprietary database of car insurance quotes about average full coverage car insurance costs by carrier

Gasoline Prices in the United Kingdom increased to 1.80 USD/Liter in November from 1.78 USD/Liter in October of 2025. This dataset provides the latest reported value for - United Kingdom Gasoline Prices - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.