The used automotive market has reached a serious milestone, recording greater than two million car transactions within the first quarter of 2025 – the primary time this degree has been achieved since earlier than the pandemic.
Based on the most recent figures launched by the Society of Motor Producers and Merchants (SMMT), 2,020,990 used autos modified arms in Q1, representing a 2.7% rise in contrast with the identical interval in 2024.
The end result marks 9 consecutive quarters of development, fuelled by elevated availability of ex-fleet and part-exchange automobiles attributable to the recovering new automotive market.
In Q1 2025 petrol autos continued to dominate the market, with 1,149,855 items bought (up 2.1%), whereas diesel registrations fell by 3.1% to 679,739 items.
Inside combustion engine (ICE) autos nonetheless accounted for 90.5% of all used automotive transactions however their market share dropped by 2.4 share factors in comparison with Q1 2024 as the amount of used hybrid and electrical automobiles available in the market continues to rise.
Battery electrical autos (BEVs) had been the standout performers, with gross sales hovering by 58.5% to 65,850 items, capturing a document 3.3% market share. Hybrid autos additionally noticed sturdy demand, with 98,830 items bought (up 30.2%), whereas plug-in hybrid gross sales elevated by 14.0% to 23,540 items.
“This optimistic efficiency noticed the greenest powertrain proceed its streak because the quickest rising, a pattern which should proceed to ship the UK’s internet zero objectives,” SMMT mentioned in its report.
“Long run success, nonetheless, depends closely on wholesome demand for brand spanking new electrical automobiles, making authorities incentives paramount. Halving VAT on new EVs and scrapping or amending their legal responsibility to the VED Costly Automobile Complement, alongside equalising VAT paid on public charging to home charges, would all assist improve uptake of latest automobiles and, in flip, promote a vibrant used market.”
Supermini recognition
Smaller autos continued to steer demand. Superminis remained the top-selling phase, accounting for 32.4% of all gross sales, adopted by small household automobiles (27.0%) and twin goal autos (16.8%).
These three segments collectively made up over three-quarters (76.2%) of the used automotive market. In distinction, gross sales of specialist sports activities, government, higher medium and MPVs declined.
Regionally, the South East noticed the best variety of transactions, with 293,103 used automobiles bought, adopted by the North West (222,795) and West Midlands (209,154).
When it comes to particular person fashions, the Vauxhall Corsa led gross sales with 8,308 items, forward of the Nissan Qashqai (7,462) and Volkswagen Golf (6,853). Different top-performing fashions included the Ford Puma, Kia Sportage, and MG HS.
Black was the preferred used automotive color for the twenty ninth consecutive quarter, representing 21.2% of all transactions. Gray and blue adopted, each posting will increase, whereas silver, orange, and gold had been among the many few colors to say no in recognition.
“The used automotive market has loved its strongest begin to a yr since earlier than the pandemic, with provide fuelled by a recovering new automotive market,” SMMT’s chief Mike Hawes mentioned. “Critically, extra second-hand consumers are choosing electrical autos, with larger selection and affordability enabling extra folks and companies to modify.”
“Sustaining and increasing this development, nonetheless, relies on a wholesome provide of EVs from the brand new automotive market – which in flip requires fiscal incentives alongside a nationally accessible and inexpensive cost level community so that everybody, no matter their funds or driving wants, can profit from zero emission motoring.”
Business remark
Commenting, James Wilson, COO of used automotive market Motorway, mentioned: “While the brand new automotive market noticed a lift in March, with consumers acutely aware of plate change month and the incoming Automobile Excise Obligation, client confidence stays beneath strain. The newest used automotive gross sales figures present that drivers proceed to show to the used marketplace for higher worth and larger selection.
“We have seen a continued improve in gross sales by way of our market, and constant demand from sellers seeking to inventory their forecourt. We’re seeing decrease emission autos cement their place because the fastest-growing phase within the used market, with a 66% YoY leap in EV and hybrid gross sales volumes. As extra second-hand EVs develop into accessible and costs proceed to fall to satisfy demand, we’re getting into a brand new part the place electrical turns into a sensible and enticing possibility for extra consumers.”
Ian Plummer, Auto Dealer’s business director, added: “The used automotive market carried some actual momentum into the brand new yr off the again of a really sturdy 2024, and it’s gathered even larger tempo over the previous few months regardless of additional political and financial turbulence. Retail costs are rising, automobiles proceed to promote at document velocity, and as mirrored within the greater than 258 million visits to our platform over the quarter, client demand stays very strong.
“Though the business will face some headwinds over the approaching months, I’ve little question the market will proceed to display its large resilience and should effectively already be on monitor to develop past our earlier prediction of seven.7 million gross sales this yr.
“The quarter noticed one other spectacular development spurt for the maturing used electrical market, as extra inventory, extra selection, and larger affordability than ever fuelled client urge for food. During the last 12 months we’ve seen the amount of second-hand electrical automobiles improve 54%, largely attributable to ex-lease autos returning to the business. With provide solely set to accentuate, strain on costs will proceed, and with two in 5 used EVs already priced under £20,000, the second-hand market will develop into ever extra enticing for consumers desirous to make the swap.”
