9:15 am, February 11, 2025
Used car experts say the market is ‘on a roll’ despite wider economic uncertainty after it was revealed that second-hand sales rose by more 5% last year.
Car Dealer reported yesterday (Feb 10) that SMMT figures showed a total of 7,643,180 used car transactions taking place in 2024 – a rise of 5.5%.
The news has been met with widespread positivity from the industry, with leaders conveying a mood of cautious optimism as they look forward.
However, with supply constraints and ZEV mandate challenges just around the corner, the road ahead remains anything but smooth.
Car Dealer was flooded with responses to the SMMT figures yesterday and we have compiled some of the most signifiant below…
‘Growth inspires optimism’
‘The 2024 used car transaction results show 5.5% year-on-year growth and, more notably, a 3.6% increase above the pre-pandemic 2001–19 average, a positive sign of steady recovery for the UK’s used car market.
‘This growth inspires optimism amid ongoing challenges in the wider automotive sector. With supply constraints and consumer confidence
pressures still looming in 2025, any further gains will serve as a testament to the resilience of the second-hand market.’
Philip Nothard, insight director, Cox Automotive
‘Good news for consumers’
‘A year of consistent growth in the used car market is good news for consumers who have increasing levels of choice.
‘As economic uncertainty has been the initial theme of 2025, this is going to be even more important for consumers who are increasingly likely to turn to the second hand market.
‘The large rise in electric vehicles (EVs) indicates demand is improving, which will be good news for the Government who are heavily relying on widespread adoption in order to make sure their zero emission vehicle (ZEV) mandate targets are attainable.
‘However, the used market relies heavily on strong new car sales in order for a strong range of stock to filter into the second hand market, and removing incentives such as the vehicle excise duty exemption for EVs could act as a significant barrier to the Government’s plans.
‘Adoption so far has stemmed mostly from fleets, and further incentives, combined with better infrastructure, will be needed to encourage new car buyers to make the change.’
John Cassidy, managing director of sales, Close Brothers Motor Finance
‘Affordability is king’
‘The used car market is on a roll, celebrating its eighth consecutive quarter of growth and record demand for pre-loved EVs.
‘With more electric and hybrid vehicles entering the second-hand market, buyers now have a wider selection than ever, helping to drive demand.
‘This surge underscores a key consumer trend — affordability is king. With household budgets under strain, many are opting for nearly new models over splashing out on a brand-new car.
‘This trend contrasts sharply with recent challenges in the new car market. Private sales of new cars have been on a downward trend, and overall growth has hit a rough patch — highlighting the financial pressures motorists are facing.
‘AA Cars’ latest Used Car Index shows that petrol and diesel models have held their value, with prices slipping just 4% over the past year to an average of £17,364 in the final quarter of 2024.
‘However, some models have seen more significant price drops, presenting excellent value for second-hand buyers.
‘Meanwhile, the average cost of the 20 most-searched-for EVs and hybrids on AA Cars crept up 1% to £19,143 in the three months to December, but are 10% lower than the same period in 2023.
‘Access to used EVs relies on a strong new car market, which supplies a steady stream of models at diverse price points. The more new EVs hitting the road today, the greater the affordability and variety for future second-hand buyers.
‘To maintain this balance, stronger incentives are needed to encourage new EV adoption, ensuring a sustainable and accessible used market in the years ahead.
‘The resilience of the used car market remains a bright spot in the motoring sector – with demand up quarter-on-quarter and 5.5% growth in 2024 overall. While economic pressures continue to shape buying habits, the second-hand market has proven adaptable.
‘As long as supply remains steady — particularly for EVs — the used car sector is well-positioned to maintain its momentum into 2025, providing budget-conscious motorists with the variety and value they need.’
James Hosking, managing director, AA Cars
Results are ‘unsurprising’
‘It is promising to see another year of growth for the used-car market. With a year of elections, policy changes and economic uncertainty, it’s unsurprising that price-conscious consumers turned to the used car market for more affordable motoring options.
‘In 2024, we saw an increasing number of EVs and hybrids entering the used market – with the supply to dealers leaping 72% in Q4, year on year according to our platform data.
‘The recent news of government investment into charging infrastructure is encouraging and will go some way to reassuring consumers and easing the transition.
‘However, we need to continue this momentum with a focus on easing lingering concerns over range, affordability and battery health.’
James Wilson, COO, Motorway
