Are used car prices dropping in the UK in May 2024?

Are used car prices dropping in the UK in May 2024?

Are used car prices dropping in the UK in May 2024?

So how much do used car prices drop in the UK between 2025 and 2024? With some sellers increasing their prices while others are reducing them, it seems that no one is pricing up their cars at a consistent rate. Are you in the market for a second hand car? What if I told you that there was a chance of prices dropping over time. Of course, you're thinking, why would they ever lower the price when people are paying more than they have done in the past? Well, there are other factors that will have an impact on car prices in the UK. We'll get to these factors as we work our way through the used car market from here on in!

We're going to analyse current trends within the used car market and show you what future developments could mean for used car pricing. However, please note, all estimates and conclusions are just educated predictions. Don't take them as "facts" until we find the proof behind them!

Used Car Market Trends. The Used Car Market. Let's start with a bit of a history lesson. The second-hand car market in the UK dates back to the early 1980s. For this reason, one of the most important factors in forecasting car prices is the economy. In 1982, the year the UK launched its economy, car values dipped by 30% and remained relatively flat for several years.

We're now at a tipping point as the UK is starting to leave the European Union and uncertainty over Brexit has pushed prices up in the short term. It's easy to look at the used car market at large and conclude that every used car price rises and falls in line with the UK economy. We now have an economy where the UK has had four different Prime Ministers in four years, including several austerity programmes, and many economists are claiming the UK's economy is growing slower than previously believed.

However, there are a number of underlying factors that can lead to price increases or decreases in the used car market. Let's work our way through each of these major factors in the used car market to understand what drives car prices in the UK. Factors in the Used Car Market. The economy: Obviously, you can't run a UK economy without it being strong.

Will used car prices drop in 2025 in the UK?

We use cookies to give you the best experience on our website. You can continue to use the website and we'll assume that you are happy to receive cookies. If you would like to, you can find out more about cookies and managing them at any time here. This site is for Professional Investors only, please read our Risk Disclosure Notice for Citywire's general investment warnings

Use of this website is subject to our terms of use and privacy policy. Regional and global economy: New trade tariffs threaten global growth? Prime Minister Theresa May has also warned that the UK will not be a rule-taker when it comes to international trade. While the UK continues to enjoy the benefits of the open trading market, will an increased number of trade tariffs threaten global growth? The British Pound has fallen to its lowest level since December 2025 against the US Dollar, following the announcement of a trade war between the US and China. The currency has fallen in response to the risk of further protectionist actions from the US, with Donald Trump reiterating his support for import tariffs on foreign goods. The British Pound has lost around 3% against the US Dollar since Wednesday, as traders fear more retaliation from the US President could jeopardise the benefits of the UK's membership of the single European market. The tariffs on Chinese goods will gradually rise to 30%, rising to 25% if the trade deficit continues to rise. The tariffs will be in place until China takes action to reduce the deficit, which could take at least two years. The measures could potentially have a significant impact on the world's two largest economies. This includes Chinese telecommunications equipment, and could be particularly painful for tech companies. The tariffs apply to a range of items, including some toys, clothes, toys, video games, mobile phones and laptops.

Are car sales slowing down in the UK?

car price trends uk

New analysis from the AA shows that sales of vehicles in the UK have slowed sharply over the past year. Is this a sign of a long term economic slowdown in the UK? The first half of 2025 was a difficult time for UK motorists with high fuel prices and a slowing economy. If things continue to deteriorate then it seems that car sales may be suffering, but are they? Car sales in the UK slumped by 5.5% in the first half of 2025 compared to the same period last year. The total number of new cars registered in the UK fell to 2.1 million - an all-time low. However, there has been a 5.6% increase in new car sales compared to last year in July to September, and the fall over the whole of 2025 has been only 5%.

For October to December 2025, the number of new cars sold was 1.9 million and for January to June 2025 it was 1.7 million.

So, are car sales in the UK slowing down? We asked the AA for their figures on the performance of the UK's car sector so we could work out what the trend is. Here's what they told us: It has been a poor start to the year, with sales down 5.5% on the same period in 2025. The biggest decline has come from new diesel and petrol cars, which have both fallen by 7.3%. Diesel cars were even worse, falling by 14.5%, while petrol cars fell by 8. The industry is feeling the pinch, with sales down 5.5% overall in the first half of 2025. The best performing sector is minicars, with sales up 8.5% in the same period, while SUVs are up 5.2%.

But, the car market is very cyclical. Are we about to see some sort of a rebound? The problem for the automotive industry in the UK is that the recovery is likely to be very short lived. It is estimated that the UK automotive sector is currently worth around 70 billion, but the real figure is closer to 80 billion, and it is expected to go backwards after the current recession.

With the UK's economic recovery set to be much more modest than that of the US, things are unlikely to get any better for the British car industry anytime soon.

Are UK car prices dropping?

Not at all, says industry watchdog

Average prices in the UK are at record highs - but still nowhere near as much as in some other countries. The latest official figures from the Society of Motor Manufacturers and Traders show that the average for new cars in March was 26,655 for the UK (up 3.6% on a year earlier).

But that's still 2.5 times more than prices in Japan (where it's just 9,500), three times more than Germany (9,100) or four times higher than South Korea (under 8,200).

So the government's car scrappage scheme could be a real success. As it stands it would cost the government just over 3.7 billion to buy back the 200,000 most polluting old diesels, but it has been suggested that if car dealers put the remaining 2 million under-used vehicles on their books there would be no need for a taxpayer-funded handout at all.

And if that's the case, then it seems obvious that car owners must be having a great deal of difficulty trading their relatively rare cars and vans for less-polluting models because the UK car market is currently at record highs. That's what we at Compare Cars would like to believe. However, official numbers show that last year, new car registrations in the UK increased to 605,982, a figure which hasn't been reached since before the credit crunch of 2025 - a time of falling vehicle sales across Europe - hit Britain.

We know that not only are we importing far fewer new cars now than a few years ago, but also in that period, the number of car dealerships being forced to shut or change ownership has also risen dramatically, up from 20 in 2025 to 33 today. And, of course, the recent scrappage scheme itself is helping, with dealerships and traders taking 2.5 million of the 2.7 million cars and vans on their books during the initial phase.

We also suspect that a small but growing number of car buyers may well be switching towards diesel because of high fuel costs, while the rise of new electric and hybrid cars has, to date, largely been confined to specialist manufacturers.

WMCW Admin

Reporting on news on topics such as used car industry prices, automobile recalls, site news and updates, opinion pieces about the used car market, and other appropriate automotive information.

Prev Post

What is the book value on a 2017 Ford Focus? Aug 9 2025

What is the life expectancy of the Ford 1.0 EcoBoost engine? Aug 11 2025

Next Post