In recent months, the car sales market has experienced notable shifts as consumers increasingly turn to used vehicles over new ones. This trend reflects changing economic realities, supply chain disruptions and evolving consumer preferences.
Industry experts and government data alike underscore this dynamic, highlighting how the automotive landscape is adapting in 2025.
Rising Demand for Used Cars
According to the latest figures released by the Department for Transport, used car sales in the UK have surged by 12% in the first half of 2025 compared to the same period last year. This uptick is significant given the gradual recovery from the COVID-19 pandemic and ongoing economic pressures such as inflation and interest rate hikes.
Market analysts attribute the rise primarily to affordability. New car prices have increased sharply, driven by the high costs of raw materials, semiconductor shortages and a general increase in production expenses. As a result, many consumers are finding used cars a more viable option, offering greater value for money without compromising on reliability and technology.
James Cartwright, a senior analyst at Auto Insights, explains, “We’re seeing a clear shift towards used vehicles because buyers want to maximise their budget. With new cars becoming less affordable, the second-hand market is booming. Additionally, the variety of quality and low-mileage used cars available is better than ever.”
According to experts at Selling My Motor, “This surge is also being driven by convenience and speed. More people are using online platforms to sell their cars quickly, which keeps the supply of used vehicles active and competitive for buyers.”
Impact of Supply Chain Challenges
The global semiconductor shortage, which began in 2020, has had a lasting impact on new car production. Many automakers have struggled to meet demand, resulting in fewer new vehicles on dealer lots. This scarcity has pushed prices upward and extended waiting times for new car buyers.
“Manufacturers simply can’t produce enough new cars to keep up with demand right now,” says Caroline Mitchell, spokesperson for the Society of Motor Manufacturers and Traders (SMMT). “This bottleneck inevitably pushes consumers toward the used car market.”
Moreover, government initiatives encouraging the adoption of electric vehicles (EVs) have increased demand for newer low-emission models, creating a supply gap in the traditional combustion engine segment. While incentives such as grants and tax breaks have boosted EV sales, not all consumers are ready or able to transition, further driving demand for used petrol and diesel cars.
Government Statistics Highlight Market Shifts
Data from the Department for Transport shows that in June 2025, used car sales reached approximately 1.5 million units in the UK alone, a 12% increase year-on-year. In contrast, new car registrations rose by only 2%, indicating a marked preference for second-hand vehicles.
They also reported that electric vehicles accounted for 25% of new car sales in the first half of the year, up from 18% in 2024. This growth in EV adoption is consistent with government targets to phase out new petrol and diesel cars by 2030. However, EV penetration in the used car market remains low, currently around 5%, due to the relatively recent introduction of many models and concerns about battery life and resale value.
Consumer Behavior and Financing Trends
Another factor fueling used car sales is the evolution of financing options. Many dealerships now offer flexible financing and subscription models that make it easier for consumers to afford used vehicles. This financial accessibility appeals particularly to younger buyers and those with tighter budgets.
Sarah Lowe, a finance advisor specialising in auto loans, notes, “Lenders are more willing to finance used cars than in previous years, often with competitive interest rates. This opens up the market to buyers who might otherwise be unable to afford a new car or large upfront payments.”
In addition, online platforms for buying and selling used cars have grown significantly, providing greater transparency and convenience. Services such as vehicle history reports, price comparisons and home delivery options enhance consumer confidence and streamline the purchasing process.
Environmental Considerations and Future Outlook
While used cars offer economic benefits, environmental experts caution that continued reliance on older less efficient vehicles could hamper efforts to reduce emissions. The government has emphasised the importance of transitioning to cleaner vehicles to meet climate goals.
“Used car sales growth is understandable in the short term,” says Dr. Helen Grant, an environmental policy analyst. “But for the UK to meet its net-zero targets, more incentives and infrastructure improvements are needed to encourage used EV adoption and sustainable transport choices.”
The government is exploring options such as trade-in schemes for older vehicles and grants for second-hand EV purchases, aiming to balance affordability with environmental responsibility.
Conclusion
The UK car market in 2025 is characterised by a robust used car sector buoyed by economic factors, supply constraints and shifting consumer preferences. Government statistics highlight a clear rise in used car sales amid modest new car registration growth, reflecting broader market dynamics.
As the industry continues to evolve, balancing affordability, technological innovation and environmental priorities will be key. For now, the used car market remains a vital component of the UK’s automotive landscape, providing practical solutions for consumers navigating an increasingly complex market.
