UK Used Car Market Size
|2019 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2019 - 2022
*Disclaimer: Major Players sorted in no particular order
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UK Used Car Market Analysis
The United Kingdom used car market was valued at USD 117.69 Billion in 2021, and it is expected to reach a value of USD 226.16 billion by 2027, registering a CAGR of 11.5% during the forecast period (2022 - 2027).
During the COVID-19 outbreak, the used car market in the United Kingdom suffered as well. With 6.7 million cars sold in 2020, the used car market fell 15% from the previous year. It performed better in 2021, increasing by 11.5 percent over 2020, with 7.5 million cars sold. However, performance in 2021 was still 5.5 percent lower than the pre-pandemic five-year average. Sales fell by 3.1 percent to just over 1.6 million in the fourth quarter of 2021, with December sales falling by 10.2 percent as cases of the Omicron variant of Covid-19 increased and restrictions tightened.
Over the long term, increasing adoption of hybrid and electric vehicles, as well as technological advancements such as the internet, have altered the buyer's market position. Furthermore, consumers are now aware of the vehicle's residual value, quality finance charges, availability, the price paid, and, in some cases, the seller's profit margin in a closing transaction. This awareness has changed the dynamics and allowed them to capitalise on customer insight. As a result, buyers are more likely to opt for used vehicles. This will foster the demand of the United Kingdom Used Car Market during the forecast period.
UK Used Car Market Trends
This section covers the major market trends shaping the UK Used Car Market according to our research experts:
Offline Segment is Expected to Hold Major Share in the Market
Online car shopping is no longer a trend nowadays it's a new normal. In the second quarter of 2021 alone, used car sales increased by 108 percent, more than doubling due to a scarcity of new models. Shortages in production caused by supply-chain disruption played a significant role, but so did the economic devastation caused by the Covid-19 crisis, with many consumers now looking for cheaper alternatives when purchasing their next vehicle.
According to the 2022 figures released by the Society of Motor Manufacturers and Traders (SMMT), the UK's used car market increased by 5.1 percent in the first quarter of 2022. There were 1,774,351 transactions, with 86,596 more cars changing hands than in 2021, when car showrooms nationwide were closed due to pandemic-related lockdowns, with only click and collect transactions permitted. Moreover, more than 2.2 million used vehicles have been sold in September 2021. The increase was so significant that second-hand car sales increased by 6.6 percent over pre-pandemic levels in 2019.
- The online retailers conduct the majority of their sales online; examples include 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.
With the rise in preference for online retailing, the online segment is expected to witness significant growth, however, a large number of customers prefer offline stores while purchasing used vehicles, to ensure and check the vehicle physically. Therefore, the offline segment of the market is anticipated to dominate the market during the forecats period.
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, which has been 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 used 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) 2022 data, it was a record first quarter for used battery electric vehicles (BEVs), with buyers eager to purchase pre-owned zero-emission vehicles. BEV transactions more than doubled, rising 120.2 percent from 6,625 to 14,586. Plug-in hybrids (PHEVs) and hybrids (HEVs) also sold in higher numbers than the previous year, up 35.3 percent to 14,433 and 28.8 percent to 35,007 units, respectively.
Thus, electric car sales are energizing the market, with zero-emission vehicles beginning to reach consumers eager to drive the latest and greenest vehicles in greater numbers. Although there is still some time before we see the recent growth in new EVs replicated in the used market, a thriving new car market will be critical to driving fleet renewal, which is critical to delivering carbon savings.
UK Used Car Industry Overview
The used cars market in the United Kingdom is fragmented, with little variation 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 a variety of growth strategies.
UK Used Car Market Leaders
Cinch Cars Limited
Constellation Automotive Group Limited
Arnold Clark Automobiles Limited
*Disclaimer: Major Players sorted in no particular order
UK Used Car Market News
- In October 2021, Constellation Automotive Group acquired Amsterdam-based CarNext, creating Europe's largest digital used car marketplace with over 2.5 million annual car sales and a gross merchandise value (GMV) of €21 billion ($29 billion).
UK Used Car Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vendor Type
5.2 Fuel Type
5.3 Body Type
5.3.3 SUVs and MPVs
5.4 Sales Channel
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Arnold Clark Automobiles Limited
6.2.2 Constellation Automotive Group Limited
6.2.3 Cinch Cars Limited
6.2.4 Aramis Group
6.2.5 Cazoo Ltd.
6.2.6 Motors.co.uk Limited
6.2.7 Auto Trader Limited
6.2.9 Car Giant Limited
6.2.10 McCarthy Cars (UK) Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
UK Used Car Market Research FAQs
What is the current United Kingdom Used Car Market size?
The United Kingdom Used Car Market is projected to register a CAGR of 11.5% during the forecast period (2024-2029)
Who are the key players in United Kingdom Used Car Market?
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.
What years does this United Kingdom Used Car Market cover?
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.
UK Used Car Industry Report
Statistics for the 2024 UK Used Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Used Car analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.