The used car market has extended its impressive run into 2025. Sales rose again in Q1 as more buyers turned to affordable, nearly-new alternatives amid improving economic conditions.
Recent economic indicators paint a cautiously optimistic picture. Inflation dipped unexpectedly to 2.6%, easing some pressure on household finances.
In response, this week the Bank of England dropped the base rate again, which should further boost consumer confidence and demand in the used car market.
Affordability remains a powerful driver, and electric vehicles are increasingly at the heart of this trend. Our data reveals prices of the UK’s most popular used EVs and hybrids fell by 10% year-on-year in Q1, making them more accessible to a broader base of buyers.
As more models enter the second-hand market, including newer, longer-range EVs, buyers are benefiting from increased variety and competitive price points. This is helping to fuel the continued growth of EVs in the used market.
However, global developments could still cloud the outlook. While the spectre of US tariffs on car imports had introduced fresh uncertainty for new car supply chains, the recent decision to slash the import tariff for UK-made vehicles to 10% is welcome news for the industry.
While this may have a less immediate impact on UK used car prices, any disruption to new car pipelines could eventually affect second-hand availability and pricing.
But the used market’s momentum continues. As long as supply remains healthy and economic conditions remain stable, the sector looks set to thrive, offering budget-conscious drivers the value, variety, and flexibility they’re seeking in 2025.
The Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes said: “The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fuelled by a recovering new car market.
“Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch.
“Sustaining and expanding this growth, however, depends on a healthy supply of EVs from the new car market – which in turn requires fiscal incentives alongside a nationally accessible and affordable chargepoint network so that everyone, whatever their budget or driving needs, can benefit from zero emission motoring.”
