The UK used automobile market is projected to see solely modest progress within the coming years. Transactions are anticipated to rise from 7.4 million in 2024 to only below 7.9 million by 2027, in keeping with Cox Automotive’s newest Perception Quarterly.
Projections for 2025, by way of used automobile transactions, exhibits a marginal 0.3% enhance on 2024 ranges which suggests the market is lagging behind pre-pandemic tendencies and constrained by financial pressures and ongoing provide limitations.
Philip Nothard, Cox Automotive perception director, mentioned: “Demand for used autos stays secure, however the UK automobile parc is contracting, and general car registrations and transactions proceed to fall in need of peak ranges seen from 2002-2008 and 2014-2019.
“Our forecast highlights the enduring appeal of used vehicles but also emphasises the reality that this sector, like much of the broader automotive market, faces ongoing pressures as consumer priorities shift and the vehicle landscape continues to adapt.”
With extra OEMs prioritising new vitality autos (NEVs), the provision of conventional inner combustion engine (ICE) autos is predicted to progressively decline.
The forecast predicts vital progress in NEV adoption inside the used market, with battery electrical autos (BEVs) rising their share of transactions by over 50% in early 2024. Whereas ICE autos nonetheless dominate, BEV registrations are anticipated to develop from 21% to 34% by 2027.
Modest declines in UK rates of interest are anticipated over the subsequent few years however inflation stays above historic averages. Affordability will probably be a major issue shaping client choices.
Over the subsequent three years, the UK’s automobile parc is predicted to say no by round 4.47%.
