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) 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

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.

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.

The United Kingdom Used Car Market is Segmented by Vendor Type (Organized and Unorganized), Vehicle Age (0-2 Years, 3-5 Years, and More), Fuel Type (Petrol, Diesel, and More), Body Type (Hatchback, Sedan, and More), and Sales Channel (Online, and More), Ownership (First-Owner, and More), Price Band (Less Than USD 7, 000, and More) and Geography. The Market Sizes and Forecasts are Provided in Terms of Value (USD) and Volume (Units).

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.

According to data from an online used car advertising platform, it took independent dealers in the United Kingdom an average of **** days to sell a used vehicle in October 2022, compared to **** days for car supermarkets. There was an overall year-over-year increase in days needed to sell a used car as the country faced a cost of living crisis.

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.

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

These files must be understood in relation to the main text. EV2ndlife_workbook.m - Matlab code containing all input data and methodology used to generate and plot results. EV2ndlife_alldata.xlsx - data generated by the above Matlab code, whose plots are included as figures in the main text and Supplementary Information. BEV_PHEV_salesdata.xlsx - sales data of BEVs and PHEVs broken down by make/model for years 2013-2016, copied from the website EV Volumes, and their use in calculating the average EV battery capacity in years 2013-2016.

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 *****, including the purchase of new cars, second hand cars, motorcycles and bicycles.

In the United Kingdom, younger drivers paid more on average for their car insurance than older drivers in 2024. A driver who is around 20 years old would be charged roughly *** British pounds whereas a driver in their 30s would be charged an average rate of *** British pounds. This higher premium stems from the idea that young drivers engage in more risky driving behavior, such as drunk driving, and therefore pose a higher risk to insurance companies. Young drivers pay more, but also tend to have more coverage Prices of different car insurance cover plans in the UK have increased since early 2022 and exceeded *** British pounds in 2023. Third party, fire and theft plans overall had higher premiums than comprehensive plans. This, however, is because the basket of risks reflects the type of driver that buys such cover, which is typically young drivers.