The UK’s used car market is continuing its run of growth, as it nears pre-COVID-19 levels. This success can only be good news for the independent aftermarket, with older cars, no longer tied to main dealerships, staying on the road.
In the second quarter of 2025, used car transactions registered a 1.7% improvement, compared to the same three-month period of 2024. In total, 1,996,116 sales took place, according to data from the SMMT.
This was slightly down on the total from the first three months of the year. However, the figures marked the 10th consecutive quarterly growth for the country’s market. This has been driven by an ongoing recovering in the new-car sector, which has boosted the supply of older vehicles.
The second quarter got off to a slow start, with a 0.4% improvement in April, as 672,145 transactions took place. However, May saw 689,196 units change hands, equating to growth of 2.5% year on year. This was the best result in the three-month period. June saw 634,775 transactions, a 2.1% rise on the same period in 2024.
The country’s used car market is operating in stark contrast to the new car sector. The UK saw mixed results, with three months of declines, and three of growth in the first half of the year. In the second quarter, registrations were up by just 0.1%. However, a strong March result for used car transactions, and decent deliveries in June, meant after six months, new-car registrations had improved by 3.5%.
Petrol on top
Petrol remained the best-selling fuel type between April and June, with transactions up 1.5% to over 1.13 million units. Diesel, however declined 4.3%, to 664,644 sales. The fuel type has struggled as registrations of new diesel models faulter. However, this is better than the 12.9% decline in the new diesel market, suggesting there is still appetite for the powertrain.
Combined, internal-combustion engine (ICE) models made up 90.1% of all used car transactions in the second quarter. However, this was down by two percentage points (pp), with a rise in electrified vehicle sales eroding this share.
Electric used car sales improve
According to the SMMT, 9.7% of transactions in the second quarter came from full hybrid (HEV), plug-in hybrid (PHEV) or battery-electric vehicle models. Of these, HEVs led the way, with sales increasing 27.7% to 100,127 units. This gave the powertrain a 5% share of the UK used car market.
PHEVs increased their transactions by 10.3% with 24,370 units changing hands, leaving them with a 1.2% share of total sales in the quarter. BEVs showed the strongest growth, up 40% with 68,721 all-electric models sold. This was a 3.4% share of the market.
In the first half of the year, the UK’s used car market was up by 2.2%, with 4,017,106 transactions taking place. Compared to 2019, this was just 0.9% down. The first quarter of the year saw sales increase by 0.04%, while the second quarter slumped 1.9%. However, this is the closest the market has been to 2019 levels since COVID-19, suggesting recovery is nearly complete.
“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 is good news for the industry and for motorists who benefit from more choice and affordability across a range of higher tech, cleaner vehicles, notably in the emerging electric vehicle sector,” commented SMMT chief executive Mike Hawes.
“To maintain this trajectory, a thriving new car market must be delivered across the segments, along with accelerated investment into the charging network to give every driver the ability to switch.”
Benefitting the aftermarket
The increase in used car sales comes hand-in-hand with the improvements in new-car registrations. As more models hit the road, the supply of older cars increases.
Therefore, looking at both new and used car figures is crucial in helping understand the level of potential work over the next few years. Trends are already developing which the UK aftermarket will need to be aware of.
One thing is clear; ICE models will remain on the roads long after the petrol and diesel new car sales ban comes into force in 2030. With a 90.1% share of used car transactions, there will need to be some collapse in the next five years for this situation to change. Therefore, the independent sector will likely become the place to go for these servicing needs.
However, with a rise in BEV and PHEV registrations comes more supply to the used car market. This is especially true of ex-fleet units. These are often sold into the second-hand sector after three years. Interestingly, the total for used EV transactions in the first half of this year is 58% of the total from 2022.
Taking this forward, this means that by the first half 2028, around 461,459 EVs could be added to the used car market, although with increases in fleets picking up all-electric models in 2023 and 2024, the ratio may increase. Therefore, workshops should be ready for these models to come in for servicing and repair.
Reaction
What is clear is that as vehicles stay on the road, servicing and parts replacement becomes more necessary, and including the correct parts is vital. Older vehicles can be more polluting as well, so emissions control is key.
“Used cars are an increasingly attractive option for motorists, but maintaining their long-term health and compliance hinges on the quality of parts used during servicing and repair,” commented Mark Blinston, Commercial Director at BM Catalysts.
“Substandard or unapproved emissions components are a growing concern in the aftermarket. These parts can trigger warning lights, degrade faster, and even result in non-compliance with MOT standards.”
The increase in used car transactions also brings the likelihood that modern cars, with ADAS and increased vehicle electronics, will come into the workshop. Ensuring awareness of these systems is critical, therefore, to maintaining the UK parc.
