United Kingdom Used Car Market Size (2024 - 2029)

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 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.