Thriving used car market due to driver preference for cost-effective options over pricey new models and electric vehicles
Record High Average Age of Cars on Britain's Roads
The average age of vehicles on Britain's roads has reached a record high of nearly 10 years, according to recent figures. This trend, primarily driven by drivers holding onto their cars longer while new car sales continue to decline, has led to a significant shift towards used cars.
Mike Hawes, boss of the Society of Motor Manufacturers and Traders, has stated that the used car market is showing momentum and providing more choice and affordability. James Hosking, managing director of AA Cars, echoes this sentiment, noting that the used car market is maintaining its strong momentum, as budget-conscious buyers continue to opt for second-hand vehicles.
Between April and June, petrol was the best-selling used car fuel type, with transactions rising by 1.5%. However, diesel declined by 4.3% in second-hand car transactions during the same period. These figures indicate that inflated new model prices and the transition to electric vehicles are deterring motorists from changing their cars.
James Wilson, chief operating officer of Motorway, states that momentum is building in the used car market, particularly for electric vehicles (EVs). Despite this, traditional petrol and diesel models make up 90% of all used sales, as EVs and hybrids are relatively new and scarce in the used market.
The number of second-hand cars sold in the first half of 2025 is 4,017,106, which is a 2.2% increase from the previous year. This is in contrast to the new car market, where registrations grew by 3.5% to 1,042,219 units in the same period, but this is a quarter of the four million second-hand transactions recorded over the same period.
The RAC Foundation suggests that the quality of cars is improving, as they are lasting longer than before. As more ex-lease and ex-fleet models hit the market, the trend of electric car adoption is expected to continue. However, sales of brand-new cars are 18% below the level in 2019, while the second-hand market is down just 0.9%.
The average age of cars on Britain's roads at the end of 2024 was nine years and ten months, which is the oldest since records began. This is an increase from seven years and five months a decade earlier at the end of 2015. Despite concerns, some view this aging fleet as potentially positive for sustainability since keeping vehicles longer may reduce waste from scrapping still-usable cars, aligning with a more circular economy approach.
Mike Hawes emphasized the need for a thriving new car market and accelerated investment into the charging network to maintain the used market's strong recent trajectory. As the UK continues to navigate economic pressures and the transition to electric vehicles, the used car market is likely to remain a significant and dynamic sector.
Sources: 1. BBC News 2. The Guardian
Insurance companies may experience a surge in the demand for comprehensive coverage as the average age of cars on Britain's roads continues to rise, potentially increasing the risk of breakdowns and accidents. On the other hand, sports car manufacturers might face a challenging market landscape due to the general shift towards fuel-efficient and more economical used vehicles, which might be less conducive to high-performance sports cars, especially considering weather conditions that could impact performance.
