Used car market booms on driver reluctance to cough-up for expensive new models and EVs

Daily Mail​

4 hours ago

Britons are buying more second-hand cars than they have done for five years as drivers' reluctance to cough-up for increasingly expensive new models - and EVs - sees appetite for used motors surge.
Official figures published on Friday show that 4,017,106 pre-owned cars changed hands in the first half of 2025.
That is up 2.2 per cent from a year earlier and is only 37,274 transactions below the same period in 2019, before the coronavirus crisis hit.
Mike Hawes, boss of the Society of Motor Manufacturers and Traders, said: 'Surpassing the four million half-year milestone for the first time since 2019 shows the UK's used car market is building back momentum.
'That's good news for the industry and for motorists who benefit from more choice and affordability across a range of higher tech, cleaner vehicles.'
However, the buoyance of the second-hand market comes in complete contrast to the new car sector, which has failed to bounce back from the pandemic and is being propped up by fleet and business sales rather than private buyers.
The evidence of this was made clear earlier this week as the latest car parc data showed that the average age of motors on Britain has hit a record high as drivers refuse to fork out for new models, shun EVs and keep their existing vehicles for longer.
Britons are buying more second-hand cars than they have done for five years, according to a new report. It comes in contrast to declining new model registrations. The swing to used cars has seen the average age of vehicles on Britain's roads hit a new record high
To put the success of the used car sector into perspective, registrations of new models grew by 3.5 per cent to 1,042,219 units in the first half of 2025.
However, sales of brand-new cars are 18 per cent below the level in 2019, while the second-hand market is down just 0.9 per cent.
Between April and June, petrol was the best-selling used car fuel type, with transactions rising by 1.5 per cent to 1,134,387 units.
Diesel declined by 4.3 per cent to 664,644 units.
The demise of diesel is not due to a lack of demand but a dramatic shrinking of availability, with manufacturers culling them from their ranges in an effort to ditch their 'dirty' connotations while transitioning to electric vehicles.
The statistics also show that, while car makers are eagerly trying to push battery-powered cars on customers aided by the recent availability of the Government's Electric Car Grant, it is combustion-engine motors that continue to dominate used transactions.
With EVs particularly in their relative infancy and hybrids drip feeding into the used market, traditional petrol and diesel models make up 90 per cent of second-hand purchases.
Hawes said that in order to maintain the used market's strong recent trajectory, a 'thriving new car market must be delivered across the segments', along with 'accelerated investment into the charging network to give every driver the ability to switch' to an EV.
Swing to used car market is why Britons' cars are older than EVER
The latest used car sales update comes just days after a review of official vehicle registrations figures by the RAC Foundation found that the average car on the country's roads at the end of 2024 was nine years and ten months - the oldest since records began.
This is up from seven years and five months a decade earlier at the end of 2015. And back in 2003, the average age was just six year and a month.
The transport policy and research organisation said the figures suggest both positives and negatives for Britain's drivers.
Firstly, the quality of reliability of the average car appears to be improving, meaning vehicles are lasting the test of time far better than they have done previously.
However, the numbers also suggest that inflated new model prices - especially during a cost-of-living squeeze - and the transition to electric vehicles has put motorists off changing their cars.
Responding to the newly published data, James Wilson, chief operating officer of used car marketplace Motorway, said: 'Momentum is building in the used car market.
'New car supply issues and cost-of-living pressures continue to push buyers towards more affordable used options, particularly EVs.
'Price parity between EVs and ICE (internal combustion engine) cars has arrived.
'This shift, combined with rising consumer confidence, will accelerate EV adoption.'
James Hosking, managing director of AA Cars, said: 'The UK's used car market has kept up its strong momentum, as budget-conscious buyers continue to turn to second-hand vehicles.
'Used cars offer a sweet spot for drivers looking to stretch their money further, especially as prices have started to settle following the record highs of the past few years.
'This is opening the door to electric motoring for thousands more drivers.
'As more ex-lease and ex-fleet models hit the market, we expect this trend to continue.'