09/10/2025
📊 Used Car Market Summary Report – July 2025
By:
MoveOn Garage - Analysis Desk
Overview:
The UK used car market continued to show signs of resilience and steady demand in July 2025, driven by sustained consumer interest in budget-friendly alternatives amid ongoing economic uncertainty and fluctuating interest rates. Despite modest headwinds, overall transaction volumes remained stable, with price corrections observed across several segments.
Key Highlights:
Average Used Car Price: £17,480
(Down 1.2% month-on-month, and 4.5% year-on-year)
The gradual price decline reflects increasing stock levels and a cooling of pandemic-era inflation.
Stock Levels:
Dealer inventories rose 5.4% compared to June, signaling improved availability and shorter sourcing lead times.
Top-Selling Segments:
Superminis and Hatchbacks continued to dominate due to affordability and fuel efficiency.
EVs and Hybrids saw a mild uptick in interest, particularly in metropolitan areas, though values have softened due to new car price cuts.
Fastest-Selling Models (National average days to sell):
1. Ford Fiesta – 18 days
2. Toyota Yaris Hybrid – 19 days
3. Volkswagen Golf – 21 days
EV Market Watch:
Used EV prices declined by an average of 6.7% year-on-year. However, buyer confidence is improving as battery warranties and charging infrastructure expand.
Retail vs Trade Price Gap:
The margin between retail and trade prices remains under pressure, averaging 12.1% across all segments, slightly down from 13.6% in Q2.
Regional Trends:
London & South East: Strongest demand and fastest stock turnover, particularly in low-emission compliant vehicles.
North West & Midlands: Increased listings, slight price softness but strong hybrid uptake.
Scotland & Wales: Consistent demand, but stock shortages in rural areas persist.
Outlook for August 2025:
With the new '75' plate registrations approaching in September, trade volumes may spike in late August. Dealers are advised to monitor stock age closely and adjust pricing strategies for older diesel stock, which continues to depreciate faster than other powertrains.
Conclusion:
The UK used car market remains in a period of recalibration following two years of volatility. While prices are adjusting, demand for quality used vehicles remains strong, particularly in the sub-£10,000 range. Dealers who adapt quickly to changing consumer preferences and maintain digital competitiveness will be best positioned heading into Q3.
By
MoveOn Garage UK - Analysis Desk
