In the United States, the average selling price for a new light vehicle came to around 47,010 U.S. dollars in 2023. New light vehicles were about 1.6 percent more expensive in 2023 than in 2022.

What is the price of a new car in the U.S.?     New automobiles and light trucks were on average around 17,700 U.S. dollars more expensive than used light vehicles: the average selling price for used vehicles amounted to about 29,300 U.S. dollars in 2023. This increasing price gap between new and used vehicles is partly linked to the industry's recovery from the semiconductor shortage, which led to higher new vehicle inventory and reduced pressure on the used vehicle market.

The semiconductor shortage    The hike in prices across the board recorded in 2022 can be in parts attributed to the global automotive chip shortage, which started in 2021 as demand rebounded from the COVID-19 pandemic. The average price rise could be observed across segments, with new full-size SUV/crossover vehicles averaging 73,900 U.S. dollars as of December 2022.

Car manufacturing is one of the core industries of the German economy. Prices for new cars fluctuated somewhat during the specified time period, but generally grew. Most recently a new car cost 44,630 euros on average.

Global reputation

Germany is home to some of the most recognized and purchased automobile brands in the world. These brands are sold internationally and have enjoyed long-standing success. Based on new car registration figures, Volkswagen had the highest market share compared to other names. Mercedes and Audi made up the top three. Volkswagen also bought other car brands in recent years, among them Porsche. The leading car models among German new car buyers were from Volkswagen. Consumers particularly favored the VW Golf, the VW T-Roc and the VW Tiguan.

New car market future

In 2023, the most new passenger cars registered in Germany by far were produced domestically. Other leading production countries included Japan and South Korea, and Czechia in the European Union. The industry is still recovering from the effects of halted production during the coronavirus (COVID-19) pandemic, as well as facing challenges due to the energy and supply crisis following the beginning of the Russia-Ukraine war in February 2022.

Total Vehicle Sales in Spain increased to 105346 Units in December from 83339 Units in November of 2024. This dataset provides the latest reported value for - Spain New Car Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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.

In the first half of 2024, the average selling price of used vehicles came to around 28,300 U.S. dollars. In 2023, new automobiles and light trucks were on average almost 17,700 U.S. dollars more expensive than used light vehicles. The used car boom As the price for new vehicles has been increasing, more Americans are turning towards buying second-hand cars and light trucks. Buying new cars and light trucks is typically seen as a privilege that few may do often. Generally, used vehicle sales are on the rise in most countries. Thanks to ever-improving technology, automobiles may keep running for many years and remain in good condition. This allows the average age of light vehicles in operation in the United States to increase slowly. Although new cars are often seen as status symbols, vintage cars are also very popular in the United States, the main reason for this trend being aesthetic and cultural values.

Sales of used light vehicles in the United States came to around 38.9 million units in the third quarter of 2024. The same period, approximately 15.6 million new light trucks and automobiles were sold here. Declining availability of vehicles In the fourth quarter of 2023, about 288.5 million vehicles were in operation in the United States, an increase of under one percent year-over-year. The rising demand for vehicles paired with an overall price inflation lead to a rise in new vehicle prices. In contrast, used vehicle prices slightly decreased. E-commerce: a solution for the bumpy road ahead? Financial reports have revealed how the outbreak of the coronavirus pandemic has triggered a shift in vehicle-buying behavior. With many consumer goods and services now bought online due to COVID-19, the automobile industry has also started to digitally integrate its services online to reach consumers with a preference for contactless test driving amid the global crisis. Several dealers and automobile companies had already begun to tap into online car sales before the pandemic, some of them being Carvana and Tesla.

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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

United States - Producer Price Index by Industry: New Car Dealers: Primary Services was 131.32800 Index Dec 1999=100 in January of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: New Car Dealers: Primary Services reached a record high of 227.19600 in June of 2022 and a record low of 97.20000 in February of 2000. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: New Car Dealers: Primary Services - last updated from the United States Federal Reserve on March of 2025.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Used Cars and Trucks in U.S. City Average from Jan 1953 to Jan 2025 about used, trucks, vehicles, urban, consumer, CPI, inflation, price index, indexes, price, and USA.

Car Registrations in Estonia increased to 627 Units in February from 534 Units in January of 2025. This dataset provides - Estonia Car Registrations - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Germany Vehicle Cost Index: Passenger Car: New data was reported at 111.100 2000=100 in 2007. This records an increase from the previous number of 107.500 2000=100 for 2006. Germany Vehicle Cost Index: Passenger Car: New data is updated yearly, averaging 105.650 2000=100 from Dec 2002 (Median) to 2007, with 6 observations. The data reached an all-time high of 111.100 2000=100 in 2007 and a record low of 103.300 2000=100 in 2002. Germany Vehicle Cost Index: Passenger Car: New data remains active status in CEIC and is reported by German Association of the Automotive Industry. The data is categorized under Global Database’s Germany – Table DE.RA015: Vehicle Cost Index (2000=100).

The U.S. auto industry sold nearly three million cars in 2024. That year, total car and light truck sales were approximately 15.9 million in the United States. U.S. vehicle sales peaked in 2016 at roughly 17.5 million units. Pandemic impact The COVID-19 pandemic deeply impacted the U.S. automotive market, accelerating the global automotive semiconductor shortage and leading to a drop in demand during the first months of 2020. However, as demand rebounded, new vehicle supply could not keep up with the market. U.S. inventory-to-sales ratio dropped to its lowest point in February 2022, as Russia's war on Ukraine lead to gasoline price hikes. During that same period, inflation also impacted new and used car prices, pricing many U.S. consumers out of a market with increasingly lower car stocks. Focus on fuel economy The U.S. auto industry had one of its worst years in 1982 when customers were beginning to feel the effects of the 1973 oil crisis and the energy crisis of 1979. Since light trucks would often be considered less fuel-efficient, cars accounted for about 77 percent of light vehicle sales back then. Thanks to improved fuel economy for light trucks and cheaper gas prices, this picture had completely changed in 2020. That year, prices for Brent oil dropped to just over 40 U.S. dollars per barrel. The decline occurred in tandem with lower gasoline prices, which came to about 2.17 U.S. dollars per gallon in 2020 - and cars only accounted for less than one-fourth of light vehicle sales that year. Four years on, prices are dropping again, after being the highest on record since 1990 in 2022.

Total Vehicle Sales in Colombia decreased to 3450 Units in January from 6476 Units in December of 2024. This dataset provides - Colombia Total Vehicle Sales - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Harmonized Index of Consumer Prices: Motor Cars for Euro Area (19 Countries) (CP0711EZ19M086NEST) from Dec 1999 to Feb 2025 about harmonized, Euro Area, Europe, vehicles, CPI, price index, indexes, and price.

Total Vehicle Sales in Brazil increased to 134795 Units in February from 123366 Units in January of 2025. This dataset provides - Brazil Total Vehicle Sales- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Used car prices in Germany have increased significantly since 2018, though 2023 saw a drop across some sales channel categories. Free trade vehicles recorded a decrease, with figures falling to around 15,700 euros in 2023. Prices of used cars sold through brand trading have always been historically higher. New and old Germany is a leader on the global car market, with car brands and production quality of long- standing. Volkswagen, Mercedes, and BMV are among the first of many names that come to mind. Consumers may therefore be motivated to buy new cars by various means of financing, considering it a good investment for the future. Of course, new car prices differ significantly compared to used vehicles, with a new car costing an average of around 44,630 euros in 2023. Prices had grown in recent years, both due to the far-reaching effects of COVID-19 restrictions on industrial production and the energy crisis following the beginning of the Russia-Ukraine war. Drivers looking to buy a car are faced with familiar cost-related decisions regarding whether they buy new or second-hand, but higher fuel prices across the board are an issue facing all vehicle owners. A market with a future The German used car market is expected to grow in the coming years, with around 114.6 billion U.S. dollars predicted for 2025. Besides potentially contributing to sustainability and environmental protection goals, selling used cars is a business going beyond Germany’s borders. For example, Poland was Germany’s leading second-hand vehicle market by far when compared to other European countries, with around 422.3 cars imported in 2023.

Total Vehicle Sales in Turkey increased to 90730 Units in February from 68654 Units in January of 2025. This dataset provides the latest reported value for - Turkey Total Vehicle Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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.

Car Registrations in European Union increased to 853670 Units in February from 831201 Units in January of 2025. This dataset provides - European Union Car Registrations- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Car Registrations in Slovakia decreased to 6205 Units in February from 6605 Units in January of 2025. This dataset provides - Slovakia Car Registrations - actual values, historical data, forecast, chart, statistics, economic calendar and news.