Used Car Market in UK Size

Report on Industry Size & Market Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Current Trends in the UK Car Market and It is Segmented by Vendor Type (Organized and Unorganized), Fuel Type (Petrol, Diesel, Electric, and Other Fuel Types), Body Type (Hatchback, Sedan, and SUVs and MPVs), Sales Channel (Online and Offline). The Report Offers Market Size and Forecasts for the UK Used Car Market in Value (USD Billion) for all the Above Segments.

UK Used Car Market Size

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United Kingdom Used Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 126.78 Billion
Market Size (2029) USD 241.32 Billion
CAGR (2024 - 2029) 11.70 %
Market Concentration Medium

Major Players

United Kingdom Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UK Used Car Market Analysis

The United Kingdom Used Car Market size is estimated at USD 126.78 billion in 2024, and is expected to reach USD 241.32 billion by 2029, growing at a CAGR of 11.70% during the forecast period (2024-2029).

The UK used car market exhibits consolidation, with a limited number of major players, both organized and unorganized, operating within the industry. Most used cars are sourced from the organized sector, claiming more than half the market share. Arnold Clark emerges as a dominant player in the offline used car market in the United Kingdom.

Consumer behavior in the used car market is evolving, with more buyers making decisions after online research. This emphasizes the need for a seamless integration of online and showroom experiences, facilitating the sharing of product information, providing sales support, and enabling online servicing. Online platforms could introduce additional services, allowing users to explore upcoming or ongoing used car auctions nearby.

The growth in the UK used car market is attributed to re-energized supply chains, stabilized prices, and a record year for electric vehicle (EV) sales. Despite the rising living costs, consumers turned to more affordable second-hand options, contributing to the overall positive performance of the used car market.

In 2023, the used car market in the United Kingdom experienced substantial growth, increasing by 5.1% and reaching 7,242,692 transactions, according to recent data released by the Society of Motor Manufacturers and Traders (SMMT). This growth trend persisted for four consecutive quarters, resulting in 351,915 more individuals opting for second-hand cars compared to 2022. The increased availability of used vehicles, stemming from the alleviation of supply constraints observed in the previous year, provided buyers with a broader range of choices.

Superminis retained their position as the most popular used car body type, constituting 32.1% of sales. The lower medium segment cars captured 26.6% of the market, and dual-purpose vehicles took 15.2%. In contrast, luxury saloons represented a minimal 0.5% of total transactions, highlighting a relatively lower demand in this segment.

UK Used Car Market Trends

The Offline Segment is Expected to Hold Major Share in the Market

The increasing trend of online shopping for used cars in the United Kingdom can be attributed to several key factors. Firstly, the convenience and accessibility offered by online platforms have revolutionized the car-buying experience. Consumers can now browse various used cars, compare prices, and gather detailed information about each vehicle from their homes. This shift toward digital platforms aligns with the broader trend of online shopping preferences, providing a hassle-free and time-efficient alternative to traditional showroom visits.

Secondly, the transparency and abundance of online information play a crucial role in the online used car shopping surge. Buyers can access detailed vehicle histories, reviews, and specifications, empowering them to make informed decisions. The ability to research extensively before making a purchase instills confidence in consumers, especially when dealing with the significant investment associated with buying a used car. Online platforms often provide comprehensive details about a vehicle's condition, mileage, and service history, fostering trust between buyers and sellers.

Lastly, integrating online and offline experiences facilitates a seamless car-buying journey. Many consumers begin their search online and then seamlessly transition to visiting showrooms for test drives or finalizing the purchase. Online platforms also enable users to explore upcoming or ongoing used car auctions, expanding their options and providing a dynamic marketplace. This convergence of online and offline elements creates a holistic approach to car shopping, catering to modern consumers' evolving preferences and expectations in the United Kingdom.

  • The online retailers conduct most of their sales online, including UK-based Cazoo and the Aramis Group (Stellantis owns a majority stake). Meanwhile, new retailers have generally established players upstream in the value chain who have begun to sell their vehicles directly, mostly online. Leasers, C2B cash buyers, and auction platforms like LeasePlan with CarNext, Arval with Autoselect, Auto1 with Autohero, and BCA with Cinch are among them.
  • In March 2024, Cazoo Group Ltd, the UK-based online used car platform that streamlines the car buying and selling process, declared its plans to shift toward a marketplace business model. This strategic move aims to capitalize on the established Cazoo brand and its robust e-commerce platform, which has been a market leader in online automotive retailing. The transition will bring advantages to the 13,000 car dealers operating in the UK's fragmented used car market. Cazoo envisions leveraging its platform to create a marketplace that facilitates and enhances the interactions between buyers and sellers in the dynamic automotive retail landscape.

Due to the increasing popularity of online retailing, the online segment is expected to see substantial growth. However, many customers still prefer visiting offline stores when purchasing used vehicles because they want to physically examine and ensure the quality of the vehicle. Hence, the offline segment of the market is expected to dominate during the forecast period.

United Kingdom Used Car Market : Volume of New Passenger Cars Registered in the United Kingdom, In Thousand Units, 2014-2022

Electric Vehicle Type is Expected to Grow with Significant Rate in the Upcoming Time Period

Used electric vehicle prices have remained affordable for consumers in recent years, a significant driving factor in electric vehicle sales. According to price analysis over the last few years, used electric vehicles have been less expensive than hybrid vehicles. In the luxury vehicle segment, electric vehicle characteristics such as technology-driven performance provide a status symbol and support sustainability, resulting in significant volume demand for used EVs.

According to the Society of Motor Manufacturers and Traders (SMMT) 2023 data, throughout the year, the sales of used battery electric cars (BEVs) nearly doubled, experiencing a remarkable 90.9% increase and reaching a record 118,973 units. This translated to a 1.6% share of the overall market, a notable rise from the 0.9% recorded in 2022. According to the SMMT, this surge aligns with the growth observed in the new car sector. It reflects a significant demand for zero-emission vehicles, particularly in the more budget-friendly price category.

The robust performance extended to hybrid and plug-in electric cars, which saw sales climb by 40.0% and 25.1%, respectively. Collectively, electrified vehicles captured a 5.6% market share, marking an increase from 4.0% in 2022. Despite these advancements in the electric vehicle sector, diesel and petrol vehicles continued to dominate, representing 94.3% of the overall market, with 6,827,466 units changing hands.

United Kingdom Used Car Market - Revenue Share (%), By Vehicle Type, 2023

United Kingdom Used Car Industry Overview

The used cars market in the United Kingdom is fragmented, with slight variations in market share held by the players. This is attributed to the increased number of pre-owned car retail outlets. Arnold Clark, Cazoo, and the Aramis Group are among the major players (Stellantis owns a majority stake). To maintain their market position, these companies are pursuing various growth strategies.

  • In January 2023, Marubeni Corporation, acting through Marubeni Auto Investment U.K. Limited (MAIUK), acquired an 80% stake in HPL Motors Limited (HPLM). HPLM serves as the holding company for Heaton Park Garage Limited (HPL), operating three specialized used car stores near Manchester. This acquisition strengthens Marubeni's presence in the automotive sector, particularly in the dealership business, expanding its reach in key locations like Manchester and London in the United Kingdom.

UK Used Car Market Leaders

  1. Cinch Cars Limited

  2. Constellation Automotive Group Limited

  3. Arnold Clark Automobiles Limited

  4. Aramis Group

  5. Cazoo Ltd.

*Disclaimer: Major Players sorted in no particular order

United Kingdom Used Car Market Concentration
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United Kingdom Used Car Market News

  • August 2023: Cazoo, the British online auto marketplace, released positive financial results for the second quarter and first half of 2023. This comes after the strategic decision to exit European businesses, focusing exclusively on its home turf in the United Kingdom. The move appears to have yielded favorable outcomes, contributing to the upbeat financial performance reported by Cazoo during this period.

UK Used Car Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vendor Type

      1. 5.1.1 Organized

      2. 5.1.2 Unorganized

    2. 5.2 Fuel Type

      1. 5.2.1 Petrol

      2. 5.2.2 Diesel

      3. 5.2.3 Electric

      4. 5.2.4 Other Fuel Types

    3. 5.3 Body Type

      1. 5.3.1 Hatchback

      2. 5.3.2 Sedan

      3. 5.3.3 SUVs and MPVs

    4. 5.4 Sales Channel

      1. 5.4.1 Online

      2. 5.4.2 Offline

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Arnold Clark Automobiles Limited

      2. 6.2.2 Constellation Automotive Group Limited

      3. 6.2.3 Cinch Cars Limited

      4. 6.2.4 Aramis Group

      5. 6.2.5 Cazoo Ltd.

      6. 6.2.6 Motors.co.uk Limited

      7. 6.2.7 Auto Trader Limited

      8. 6.2.8 Carcraft.co.uk

      9. 6.2.9 Car Giant Limited

      10. 6.2.10 McCarthy Cars (UK) Limited

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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UK Used Car Industry Segmentation

A used car is one that one or more owners have initially purchased. Used cars are sold in various locations, including rental car companies, franchise and independent car dealers, auctions, and private party sales.

The UK used car market is segmented by fuel type, body type, vendor type, and sales channel.

The UK used car market is segmented into petrol, diesel, electric, and other fuel types by fuel type. The market is segmented by body type into hatchbacks, sedans, SUVs, and MPVs. By vendor type, the market is segmented into organized and unorganized. By sales channel, the market is segmented into online and offline. The report covers the market size and forecasts by the value (USD billion) for all the above segments.

Vendor Type
Organized
Unorganized
Fuel Type
Petrol
Diesel
Electric
Other Fuel Types
Body Type
Hatchback
Sedan
SUVs and MPVs
Sales Channel
Online
Offline
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UK Used Car Market Research FAQs

The United Kingdom Used Car Market size is expected to reach USD 126.78 billion in 2024 and grow at a CAGR of 11.70% to reach USD 241.32 billion by 2029.

In 2024, the United Kingdom Used Car Market size is expected to reach USD 126.78 billion.

Cinch Cars Limited, Constellation Automotive Group Limited, Arnold Clark Automobiles Limited, Aramis Group and Cazoo Ltd. are the major companies operating in the United Kingdom Used Car Market.

In 2023, the United Kingdom Used Car Market size was estimated at USD 111.95 billion. The report covers the United Kingdom Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The factors driving the United Kingdom Used Car Market are a) Rising new car prices pushing consumers towards more affordable used car options. b) Advancements in car technology and maintenance practices extending the lifespan of used cars

UK Used Car Industry Report

The used car market in the United Kingdom is witnessing significant growth, offering a great value proposition with a diverse range of options including compact cars, SUVs, and mid-size vehicles in both petrol and diesel. This market, rich in choices to suit various needs and budgets, is segmented into organized and unorganized channels. The organized segment, featuring dealer chains, online marketplaces, and dealers affiliated with original equipment manufacturers, is experiencing notable growth, due to the adoption of advanced technologies like AI and blockchain. These technologies enhance the buying experience by improving touchpoint management and providing financial assistance, making the journey of purchasing used cars in the UK more seamless and user-friendly. Despite challenges from the rising preference for car subscription services, the market remains robust, driven by consumers' demand for affordability, quality, and access to modern automotive technology. For detailed insights, Mordor Intelligence™ Industry Reports offer a comprehensive analysis, including market share, size, revenue growth rate, and a forecast outlook for the UK used car market, available as a free report PDF download.

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Used Car Market in UK Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)