SALES of used cars in the UK are predicted to reach 7.64 million this year – a flat year-on-year performance but still 3.6% above the long-term average from 2001 to 2019, according to Cox Automotive.
It says that this reinforces the used market’s role as a “stabilising force” amid wider industry volatility.
Supply constraints set to ease
Despite ongoing supply challenges, particularly for vehicles aged three to five years, the used car market in 2025 is showing signs of resilience.
Supply constraints, largely a legacy of Covid-19 pandemic-era production slowdowns, are expected to ease in the second half of the year, offering retailers renewed opportunities to meet consistent consumer demand.
Values returning to seasonal patterns
A further positive signal for the industry is the continued stabilisation of trade values. Cox Automotive now sees values returning to more typical seasonal patterns, particularly for petrol and diesel models.
Looking at vehicles aged between 24 and 72 months old, values have remained consistent over the previous 18 months.
Specifically, petrol values stayed flat – 60% of original cost new (OCN) in April 2025 versus 60% in October 2023 – a marked difference from the 6% dip that petrol vehicles saw between October 2022 and October 2023. Meanwhile, hybrid values declined by only 4% in the same period and diesel by 7%.
“The used market continues to provide a vital anchor for the automotive sector. As trade values stabilise and consumer appetite for affordable vehicles remains strong, retailers have a clear opportunity to set robust retail prices, where market conditions support them, and maximise their margins. Strategic stock selection and strong retail pricing will be crucial to sustaining profitability in a supply-constrained environment.”
Buyer confidence still affecting EV van sales
The commercial vehicle sector also remains robust, says Cox Automotive. Diesel continues to dominate, but electric vans are gaining ground, with a 62.6% increase in arrivals at Manheim auction sites in Q1 2025. However, infrastructure concerns and cost sensitivity continue to limit buyer confidence, with only four in 10 electric vans selling first time.
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Sarah Tooze has been an automotive journalist for more than 15 years, specialising in the fleet and transport sectors. She has held senior positions at industry-leading B2B titles Fleet News and Smart Transport, and led campaigns championing motorists as consumer editor for online used car marketplace Heycar and motoring advice website HonestJohn.co.uk. In 2017 she won the Newspress Automotive Business Journalist award.
