The UK’s used car market has returned to pre-pandemic levels for the first time in five years, with more than four million vehicles changing hands in the first half of 2025. Softer prices, greater choice and improved supply mean buyers are now getting more for their money – a welcome change during a time of rising bills and economic uncertainty.
Figures from the Society of Motor Manufacturers and Traders (SMMT) show sales grew 1.7% between March and July to almost two million transactions, the best performance since 2021. It’s the 10th consecutive quarter of growth, driven by the new car market over-supply, and the knock-on effect of more part-exchanges and ex-lease vehicles feeding the secondhand market.
For buyers, this means more opportunities to shop around for a better-specced, newer or lower-mileage car without stretching budgets. Dealers report that competitive pricing is helping cars move quickly, with some segments – particularly small hatchbacks and family SUVs – offering especially good value compared with 18 months ago.
Choice improves as electrified cars hit record share
The rise in supply is also changing what’s available on forecourts. One in 10 used cars sold in Q2 was electrified, with electric cars hitting a record 68,721 transactions – 40% up on last year. Hybrid sales rose 27.7%, while plug-in hybrids were up 10.3%. More of these cars are now within reach of buyers who couldn’t justify them new.
Petrol cars remain the most popular choice, with sales up 1.5% to 1.13 million units, while diesel sales slipped 4.3% to 664,644. Smaller cars such as superminis and lower-medium hatchbacks still dominate the market, together making up over half of all transactions.
SMMT Chief Executive Mike Hawes 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 motorists, who benefit from more choice and affordability across a range of higher tech, cleaner vehicles, notably in the emerging electric vehicle sector.’
What this means for you
If you’ve been holding off changing your car because of high prices, now is a better time to start looking. More supply means more competition between dealers, and that can mean more room to negotiate.
You’ll find a wider range of cars in budget, from city cars to family SUVs, with many newer models now available at prices that would have bought an older or higher-mileage car a year ago. That means you can potentially step up a trim level or find something with more equipment for the same spend.
For those considering an EV, the record rise in used electric sales, and plummeting values, means you’re more likely to find one in your price range – and with a good chunk of the manufacturer warranty still intact. Home charging will still be the biggest factor in whether it makes sense for you.
Editor’s view: Prices fall back to normal, people start buying again
The idea of high prices and strong residual values brought on by the pandemic are a fading memory, and consequently, buyers are returning to the market in their droves. After years of inflated prices and slim pickings, the market is finally back in balance. It’s still not cheap to change your car, but at least you’re getting more for your money these days.
The fact that EVs are filtering into the used market in bigger numbers is encouraging too. As long as you can charge at home, a well-priced used EV can slash running costs. The more choice there is, the less risky they feel to buy.
And while I’ll always have a soft spot for a well-kept modern classic – , I can’t argue with more affordable everyday cars for more people. Whether you’re upgrading, downsizing or just in need of a change, 2025 could be the year to do it.
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