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

In 2021, the used car market in the United Kingdom was worth around 117.69 billion U.S. dollars. This market size is expected to reach close to 226.2 billion U.S. dollars by 2027, with a compound annual growth rate of 11.5 percent between 2022 and 2027. Used vehicles were the main passenger car segment in the country in 2021, representing some 7.53 million sales.

The Report Covers Current Trends in the United Kingdom Car Market, and It is Segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Electric, and Other Fuel Types), Body Type (Hatchback, Sedan, and SUVs and MPVs), and Sales Channel (Online and Offline). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

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.

Except for Poland and Sweden, the online business-to-consumer used car retail price index in selected European countries had decreased or remained stable at the beginning of June 2023. In most countries surveyed, this retail index had increased compared to used car prices recorded in January 2022. France and Portugal recorded the steepest price inflation, at a price index of 106 and 105.7, respectively. In contrast, used cars in Germany and the United Kingdom were cheaper in June 2023 than in January 2022.

The UK used car market: Boosted by national supply

Most European countries imported a large share of the used cars in circulation in each country. At a share of 10.73 percent for imported used cars, the United Kingdom was one of the few European countries to rely heavily on its national supply of used vehicles. Nearly 6.9 million used cars were sold in the UK in 2022, though the cost of living crisis and used car price hike have dampened the success of this national market.

Portugal: Inflation and the used car market

Even in markets more reliant on used car imports, inflation has impacted the market. Over 67 percent of the light passenger vehicle market in Portugal was reliant on used vehicle imports from the European Union, but only 18 percent of consumers intended to purchase a used car as of November 2022. However, while car demand has been influenced by rising prices, inflation has also contributed to the popularity of secondhand vehicles. In Portugal, 93 percent of consumers preferred a used purchase over a new car due to the new car prices, a share which reached 83 percent for the United Kingdom.

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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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Motorists in the United Kingdom bought some 9.14 million cars in 2024, over 7.2 million of which were used cars. The previous year, the average household expenditure on used cars and vans in the UK was around 20.2 British pounds per week.

The Europe Used Car Financing Market is segmented by Car type (Hatchbacks, Sedans, Sports Utility Vehicle, and Multi-purpose Vehicle), by Financier (OEM, Banks, and Non-Banking Financing Companies), and by Country (Germany, United Kingdom, France, Italy, and Other Countries). The report offers the market size and forecasts in value (USD Billion) for all the above segments.

At the beginning of June 2023, the Tesla Model 3 was the fastest-selling used car under four years old on the online business-to-consumer (B2C) used car market in the United Kingdom, as indicated by its low market days' supply (MDS) which amounted to just over 24 days, the average amount of days the car would be in stock on the online B2C platforms before running out.

This report covers Major Dealers of UK Used Car Market, Major Investors in UK Used Car Market, Major players of Used Car Market UK, challenges in UK Used Car Market, Competitors in UK Used Car market.

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..

The United Kingdom Auto Loan Market Report is Segmented by Product (passenger Vehicles, Commercial Vehicles), Ownership (new Vehicles, Used Vehicles), Provider Type (banks, Non-Banking Financial Companies, Original Equipment Manufacturers, Credit Unions, Other Provider Types), and Tenure (less Than Three Years, 3-5 Years, More Than Five Years). The Report Offers Market Size and Forecasts for the United Kingdom Auto Loan Market in Value (USD) for all the Above Segments.

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.

Updated data tables containing impact analysis of the planned improvements to private rental and second-hand car measurement in consumer price statistics.

Examining the impact of rising taxes on the UK's thriving secondhand electric vehicle market, threatening continued growth and affordability.

The size of the United Kingdom Auto Loan Market was valued at USD 90.30 Million in 2023 and is projected to reach USD 122.64 Million by 2032, with an expected CAGR of 4.47% during the forecast period. The auto loan market refers to the financial services sector that provides loans for purchasing vehicles. It enables consumers to finance the cost of new or used cars, spreading payments over a set period through monthly installments. Auto loans are typically offered by banks, credit unions, and specialized financial institutions, with loan terms and interest rates depending on factors like the borrower’s creditworthiness, the type of vehicle, and market conditions. The demand for auto loans is driven by increasing vehicle ownership, rising consumer incomes, and the need for flexible financing options. Additionally, the growth of the automotive industry, particularly electric vehicles (EVs), has further boosted the market as more consumers seek loans for environmentally friendly cars. Digitalization and the rise of online banking have simplified the loan application process, allowing for quicker approvals and enhanced customer convenience. Recent developments include: December 2023: Blue Motor Finance Limited (Blue), an FCA-regulated UK-based car finance provider, prides itself on its ability to use technology to enhance its customer service. Customers can now request all of their agreement-related documentation for the life of their loan in one simple file at the touch of a button. Customers can also request to receive a settlement quote in real-time at a time convenient to them., August 2023: Santander Consumer Finance extended its partnership with MG Motor to provide dealers with an EV benefits scheme for customers.. Key drivers for this market are: Quick Processing of Loan through Digital Banking. Potential restraints include: Rising Interest Rates Affecting New Auto Buyers Demand for Loan. Notable trends are: Increasing Registrations of Electric Vehicle in United Kingdom.

Approximately 6.89 million used cars were sold in the United Kingdom in 2022. This represented a decrease of 8.5 percent year-over-year. This drop, brought on by the cost of living crisis in the country, was still above 2020 sales volumes.

Over 56 percent of all used car transactions in the United Kingdom in 2021 were petrol cars. Plug-in electric vehicles were at the bottom of the ranking, with just onver 40,200 battery-electric cars sold in the UK. Overall, the used vehicle market made up the majority of passenger car sales in the UK in 2021.