As of March 2022, sport utility vehicles were the most expensive vehicle type in the United Kingdom, costing on average just over 38,000 British pounds. In contrast, city cars were more affordable, with prices averaging 13,600 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 41,750 British pounds. In contrast, the price of hatchbacks had on average decreased, down to 15,700 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 2023, where the year 2015 equals 100. In 2023, the annual average price index value of new car purchases was measured at 132.6, 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 118.9.

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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 billion at a CAGR of 6.2% between 2024 and 2029.

The Used Car Market in the UK presents a significant value proposition for investors and businesses due to its size and growth dynamics. This market is driven by various factors, including the improving economic conditions, increasing consumer preference for cost-effective alternatives to new cars, and the rise of touchpoint management solutions that enhance the buying and selling experience. Furthermore, the emergence of car subscription services has added a new dimension to the market, offering flexibility and convenience to consumers. However, challenges such as increasing competition, regulatory changes, and the need for transparency and trust in the marketplace require strategic planning and innovation from market participants. Companies seeking to capitalize on these opportunities and navigate challenges effectively should focus on offering competitive pricing, exceptional customer service, and innovative solutions that address the evolving needs of consumers in the UK used car market.

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

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The used car market in the UK is a significant sector of the European automobile industry, characterized by demand and dynamic trends. With a vast dealership network and increasing online sales, this market caters to various consumer preferences, including sports utility vehicles (SUVs), passenger cars, hatchbacks, sedans, hybrid vehicles, and electric cars. The market's size is substantial, with millions of used vehicles transacted annually. Key trends include the growing popularity of SUVs, digital sales, and car subscription services. Online marketplaces, such as auto marketplaces and telecom industry platforms, facilitate transactions, offering consumers access to extensive vehicle history records, financing options, and vehicle quality information. Used car management companies, leasing offices, and car dealers play crucial roles in the market, providing services like vehicle inspections, appraisals, and certification. The market's direction is influenced by factors like consumer confidence, residual values, and the shift towards petrol engines, diesel vehicles, and alternative fuel options like hybrid and electric vehicles. Quality finance charges, off-lease vehicles, and blockchain records are increasingly shaping the market landscape, ensuring transparency and trust in used car transactions. The average ownership duration is decreasing, with consumers seeking more flexible financing options and convenient digital retailing experiences. Overall, the used car market in the UK remains a vibrant and evolving sector, adapting to consumer needs and technological advancements.

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 sizeTypePetrolDieselOthersGeographyUK

By Channel Insights

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

Used cars in the UK market are primarily sold through organized companies, which include dealership chains, online marketplaces, and original equipment manufacturers (OEM)-affiliated dealerships. These organizations ensure a smooth vehicle ownership transfer with local government collaborations and complete transparency regarding timelines and fees. They offer technical expertise and financial support to buyers, enabling a more convenient and trustworthy purchasing experience. The rise of online marketplaces, such as Motors.Co.Uk, with features like virtual showrooms and detailed vehicle histories, has significantly contributed to the growth of the used car sector. Organized companies' ability to digitalize and create a seamless interface is a key driver for sales during the forecast period.

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The Organized segment was valued at USD 78.40 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of UK Used Car Market?

Excellent value for money proposition of used cars is the key driver of the market. The used car market in the UK has witnessed significant growth due to the increasing number of automakers entering this sector and the

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 five percent more than the national average.

This statistic shows the average prices of auctioned cars of all ages in the United Kingdom (UK) between September 2014 and January 2016, in British pounds. There were expected seasonal fluctuations in the prices ranging from around 5,250 British pounds to over 5,700 British pounds.

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.

For the third year in a row, the UK passenger car market recorded growth in sales value, which increased by 7.9% to $61.6B in 2024. Overall, the total consumption indicated a remarkable increase from 2012 to 2024: its value increased at an average annual rate of +5.1% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption increased by +54.6% against 2019 indices.

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Used Car Market Size 2024-2028

The used car market size is forecast to increase by USD 857.1 billion at a CAGR of 7.56% between 2023 and 2028.

The market is experiencing significant growth and transformation, driven by increasing competition leading to the launch of numerous new car models and the emergence of innovative business models. One of the key trends shaping this market is the rising demand for car subscription services, which offer flexible and affordable access to vehicles without the long-term commitment of ownership. Another trend is the increasing popularity of car-sharing services, which provide short-term vehicle rentals on an hourly or daily basis, addressing the growing need for mobility solutions in urban areas. These trends present both opportunities and challenges for market participants. For companies looking to capitalize on the growing demand for used cars, there is a significant opportunity to offer flexible and affordable solutions through car subscription and car-sharing services. However, increased competition and changing consumer preferences require a deep of market dynamics and the ability to adapt quickly to emerging trends. Moreover, the market is also facing challenges such as the increasing complexity of vehicle technology and the need for reliable and efficient after-sales services. Companies that can effectively address these challenges and provide value-added services to customers are likely to succeed in this market. Overall, the market is an exciting and dynamic space, offering significant opportunities for growth and innovation for companies that can navigate the challenges effectively.

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

Request Free SampleThe market continues to be a dynamic and sizeable industry application in the personal transportation sector, catering to a diverse consumer base. With the increasing popularity of modern cars equipped with advanced safety features like adaptive cruise control and lane-keeping assistance, the demand for used vehicles with such technologies is on the rise. Online platforms and e-commerce platforms have revolutionized the buying process, enabling consumers to access vehicle histories through mobile apps and vehicle history reports. Environmental concerns have also influenced the market, driving demand for used vehicles with fuel efficiency and low emissions. As technology advances, infotainment systems and imaging technologies are becoming increasingly important considerations for used car buyers. Overall, the market is poised for continued growth, offering consumers a cost-effective alternative to new vehicles while providing access to the latest industry applications and technologies.

How is this Used Car Industry segmented?

The used car industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. Vehicle TypeCompact carSUVMid sizeChannelOrganizedUnorganizedFuel TypePetrol/GasolineDieselElectric/HybridEnd UserIndividual BuyersBusiness/Fleet OperatorsGeographyAPACChinaIndiaJapanNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaEgyptKSAOmanUAESouth AmericaArgentinaBrazil

By Vehicle Type Insights

The compact car segment is estimated to witness significant growth during the forecast period.The compact car segment in the global used vehicle market is experiencing significant growth due to increasing consumer preference for personal mobility and the need for fuel efficiency. Europe and Asia-Pacific are the leading markets for used compact cars, driven by the availability of diverse consumer bases, aging vehicle fleets, and regulatory changes. Compact cars, such as the Fiat Panda and Volkswagen Golf, are popular choices due to their adaptive cruise control, lane-keeping assistance, and infotainment systems. Eco-friendly vehicles, including hybrid and electric cars, are gaining traction due to environmental concerns and increasing fuel prices. Online platforms and e-commerce marketplaces, such as Ebay Inc., offer competitive financing options, flexible loan terms, and digital verification for a seamless buying process. Modern vehicles with advanced imaging technologies and virtual vehicle inspections ensure transparency and symmetry of information for buyers. The future outlook for the market is positive, with a focus on eco-friendly cars, affordable models, and digital retailing. Sales channels, including franchise dealers, independent dealers, and car auctions, offer various fuel types, vehicle types, and warranty options to cater to budget-conscious buyers. Online sales, lease returns, and trade-in programs are also contributing to the growth of the market.

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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 2.5 percent. While prices at independent dealers also rose, their growth was slower than at their franchised dealers and car supermarket counterparts.

Revenue is anticipated to grow at a compound annual rate of 0.4% to £146.6 billion over the five years through 2024-25, inducing revenue growth of 3.6% in 2024-25, when the average profit margin will be 7.1%. New car registrations inched downwards in 2021 due to skyrocketing fuel prices and customers delaying sales. New car sales have been rising since 2023, driven by electric sales and plug-in hybrids, despite squeezed household incomes. According to the SMMT, rising sales in 2024 are driven by commercial and fleet customers. Stricter environmental laws, like the expansion of the ULEZ zone in London, are leading to higher business sales and elevating revenue. New car registrations are rising in 2024, mainly aided by fleet renewals and business customers switching to electric and hybrid vehicles. According to the SMMT, fleet sales hold a 62.4% market share in the first two months of 2025, towering over private sales at 35.8% over the same period. Sales of alternatively fuelled vehicles like battery, plug-in, and hybrid electric vehicles are surging as environmental concerns continue to creep upwards. Electric vehicle have the most growth potential as interest in diesel vehicles fall sharply.

Revenue is projected to climb at a compound annual rate of 1.1% to £154.7 billion over the five years through 2029-30, when the average profit margin will be 6.8%. As consumer confidence and disposable income inch upwards, new car sales will rise, driving revenue up. Car financing options provide growth opportunities for car dealerships to boost profit. Sales of alternatively fuelled vehicles will gain further momentum, boosting revenue, as fuel prices rise sharply and customers take advantage of government investment in charging infrastructure and incentives to boost sales of electric vehicles. Plans to ban new petrol and diesel vehicle sales by 2035 and fines for car manufacturers that miss set targets will also push dealers to focus on AFVs.

The average passenger car import price stood at $36,108 per unit in August 2024, reducing by -26.9% against the previous month.

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

This statistic compares the market value for used and new cars in the United Kingdom (UK) between 2003 and 2014, in billion British pounds. The used car market has grown thanks to the recession as more people now are looking for ways to save money. However, when compared to the difference in volume of new and used cars, the lower prices of used cars diminish the relative importance of the market.

A dataset of van running costs including depreciation, fuel, and SMR by van type, make, fuel, CO2, and price bands.

This statistic shows the Consumer Price Index (CPI) for vehicle 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 vehicle purchases was measured at 125.7, including the purchase of new cars, second hand cars, motorcycles and bicycles.

Fuel wholesalers have come up against hugely volatile markets in recent years. The COVID-19 outbreak and subsequent travel restrictions and lockdowns led to a standstill in global transport activity, driving a sharp drop in fuel prices and sales in 2020. Air passenger numbers tanked by 73% in the EU in 2020, according to the European Commission, driving a sharp drop off in demand for jet fuel. OPEC+ manipulates world crude oil prices by adjusting production quotas and collaborating with other producers. OPEC+ worked to cut production in early 2021 to raise prices back to their pre-pandemic level, which gave fuel wholesalers a big boost. Then, Russia’s invasion of Ukraine led to a string of sanctions being placed on Russia by the EU and other Western nations, including the UK. Bans on Russian fuel exports drove prices and wholesalers’ revenue through the roof. For example, according to vehicle insurer RAC, the average price of unleaded in the UK shot up by 23.8% between 2021 and 2022. Over the five years through 2024, fuel wholesalers’ revenue is forecast to fall at a compound annual rate of 3.8% to reach €1.1 trillion, including an expected 5.8% tumble in 2024 as supply cuts push prices up. Rising levels of environmental awareness will encourage fuel wholesalers to stock a growing range of low-carbon fuel options like biofuels and hydrogen (when they become more financially viable) in the future. In many European countries, the push to decarbonise transport is accelerating, with electric vehicles gaining ground on petrol vehicles, having already surpassed the market share of diesel vehicles in terms of new car registrations. The long-term fall in investment in oil and gas will also push up prices. Over the five years through 2029, revenue is anticipated to fall at a compound annual rate of 1.3% to reach €1.2 trillion.

Over the forecast period until 2028, the average price is forecast to exhibit fluctuations among the seven segments. Comparing the seven different segments for the year 2028, the segment 'Bentley' leads the ranking with 253.89 thousand U.S. dollars. Contrastingly, 'Chrysler' is ranked last, with 31.63 thousand U.S. dollars. Their difference, compared to Bentley, lies at 222.26 thousand U.S. dollars. Find further statistics on other topics such as a comparison of the number of vehicle sales in the United Kingdom and a comparison of the revenue in Poland. The Statista Market Insights cover a broad range of additional markets.

This statistic shows the average price of cars sold at auction according to age group in the United Kingdom (UK) as a 12 month total for the year January 2015 to January 2016, measured in British pounds. As shown here, the youngest cars accounted for the smallest proportion of sales for this year recorded here.