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 ****** 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 2023, where the year 2015 equals 100. In 2023, 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 guara

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.

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

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.

The United Kingdom: Vehicle prices, world average = 100: The latest value from 2021 is 119.83 index points, an increase from 105.64 index points in 2017. In comparison, the world average is 108.07 index points, based on data from 165 countries. Historically, the average for the United Kingdom from 2017 to 2021 is 112.74 index points. The minimum value, 105.64 index points, was reached in 2017 while the maximum of 119.83 index points was recorded in 2021.

In UK Used Car Market, The average price of a used car is around £15,000. The most popular used cars in the UK are hatchbacks and SUVs.

The electric vehicle market in the United Kingdom continues to pick up steam, despite a slight slowdown: In terms of sales volume, the UK market share of plug-in electric vehicles reached **** percent in 2023. Concurrently, the popularity of conventional cars has been decreasing. Diesel demand slumps The average price of diesel fuel has been fluctuating in the past years, peaking in July 2022 at a UK average of nearly * British pounds per liter. However, the decrease in the price of diesel through July 2023 did not prevent the share of new diesel cars in the UK from decreasing that year. The decline in diesel car sales can be attributable to a number of factors: One of the main factors includes the negative perceptions of diesel associated with the ‘Dieselgate’ scandal. Other factors include fears of a tightening regulatory environment. Petrol cars still loved by consumers
At mid-year 2024, just over half of UK online respondents to Statista's Consumer Insights survey reported intentions to purchase a car in the following 12 months. While petrol car sales have decreased in market share between 2022 and 2023, half of UK consumers still consider this propulsion type when buying a car, with hybrid coming in second.

A dataset of average pence per litre and per gallon petrol and diesel fuel prices in the UK regions including England, Scotland, Wales, and Northern Ireland.

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 ***** British pounds to over ***** British pounds.

Companies in this industry sell classic cars — defined by HMRC as any car manufactured at least 15 years ago and with a market value of at least £15,000. As a luxury industry, it is sensitive to changes in disposable incomes, particularly in the highest quintile, which dictate how much individuals can spend on discretionary items. The COVID-19 outbreak slashed household expenditure in the highest quintile, constraining industry revenue in 2020-21. The cost-of-living crisis caused a sharp drop in disposable incomes; however, the highest earners remained somewhat shielded from this, with industry revenue expected to climb by 2.1% in 2024-25. Over the five years through 2024-25, the classic car dealer industry is expected to expand at a compound annual rate of 1.7% to shy of £2 billion. Affluent individuals historically dominated the downstream market for classic cars, acquiring them as part of a more extensive collection. Similar to pieces of art, classic cars can be a store of wealth and a form of investment. However, classic cars have become more popular among middle-class consumers, which is evident from the rapidly growing prices of low-cost classic cars, indicating increasing demand for these vehicles. Price jumps were particularly prominent in the two years through 2022 despite numerous economic headwinds like rising interest rates and uncertainty surrounding a potential recession. Momentum slowed in 2023, with Hagerty reporting only one-third of classic cars appreciating, attributing it to the cost-of-living crisis starting to bite. Over the five years through 2029-30, the classic car dealer industry is expected to expand at a compound annual rate of 3.2% to £2.4 billion. Rising consumer-to-consumer sales brokered on websites will restrict growth prospects for classic dealers. On top of this, a growing number of clean air zones in cities across the UK, coupled with lower emission targets and taxes on high-emission vehicles, will hamper industry growth, skyrocketing the cost of using older cars. However, technological developments like electric conversions will mitigate this somewhat, driving industry revenue growth in the coming years.

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.

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

A lack of investment has pushed the UK Motor Vehicle Manufacturing industry into decline. Engine production is inching downwards as the industry struggles to attract investment because of higher EU production and multinationals wanting 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 (SMMT) – 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, further sinking revenue. Car makers have abandoned diesel vehicles to produce electric vehicles. Car makers’ revenue is forecast to fall at a compound annual rate of 3.6% over the five years through 2024-25 to £53.4 billion. There’s a glimmer of hope – hybrid and pure electric vehicle sales are rising, both at home and abroad. 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. Revenue is expected to drop by 4.2% in 2024-25, with the average profit margin forecast to reach 5.9%. Manufacturers are passing on higher production costs, and luxury vehicle sales are driving profit. 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 car makers 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 will dominate the market in the long term as public and private efforts are pointed towards net zero policies. Revenue is expected to expand at a compound annual rate of 5.2% over the five years through 2029-30 to reach £68.9 billion.

Revenue for the Motor Vehicle Maintenance and Repair industry is forecast to rise at a compound annual rate of 0.3% over the five years through 2024-25 to £34.9 billion. The number of registered cars on UK roads is rising, pushed by a boom in used car sales, which is strengthening the need for repairs. Membership schemes have been a game changer for the industry employed by large companies like Halfords and Kwik Fit, with the main purpose of ensuring customers do not put off car repairs because of high costs. The schemes provide a steady stream of revenue. However, technological advances have lengthened the life and safety of vehicles, reducing collisions. Modern cars are more durable, prolonging their replacement cycles and reducing the volume of work for garages. Soaring fuel prices have also dented demand; higher running costs have put people off from driving as often, reducing wear and tear and limiting sales for garages. A fall in fuel prices in 2024-25 is getting more people back on the road, leading to more wear and tear – elevating the frequency of repairs. Revenue is forecast to rise by 2.2% in 2024-25. Revenue is forecast to expand at a compound annual rate of 2.7% over the five years through 2029-30 to £39.8 billion. The total number of vehicles on UK roads is expected to climb in the coming years, and most will need annual servicing, repairs and MOT tests, creating a stream of work for garages. Surging used vehicle sales have raised the average age of UK cars, boosting the need for future repairs. Fuel prices are anticipated to remain high, meaning fewer miles will be driven in the coming years as motorists try to cut running costs. Government policies to boost the uptake of electric cars will mean mechanics need to update their knowledge and equipment to make sure they know how to carry out repairs properly. Work on electric vehicles brings with it higher repair prices, enhancing profitability.