The UK's car market is heading for its strongest performance since before the coronavirus pandemic struck, with nearly 10 million vehicles expected to be sold this year. Online vehicle marketplace Auto Trader predicts two million new cars and 7.75 million used cars will find buyers across 2025.
The projected total of 9.75 million sales would mark a three per cent increase on last year's figure of 9.5 million vehicles. This would represent the highest annual total since 10.3 million cars were sold in 2019, before the virus crisis disrupted the automotive industry.
Older cars driving growth
Auto Trader reports a surge in demand for used cars aged five to 10 years, which are becoming the fastest-selling segment of the market. The company predicts that by the end of the year, there will be 10.1 million of these vehicles on UK roads, up from 8.7 million in 2017.
Vehicles at least a decade old are expected to make up 26 per cent of the 32.8 million cars licensed in the UK. This compares with 23 per cent in 2019, highlighting the growing appetite for budget-friendly options.
Pandemic effects still visible
The coronavirus pandemic's disruption to new car production has created a shortage of cars aged three to five years, according to Auto Trader. This gap in the market has pushed buyers towards older, more affordable alternatives.
Ian Plummer, Auto Trader's commercial director, said the figures demonstrate "the underlying strength of consumer demand". He revealed that the company's website received more than half a billion visits in the first half of this year, an all-time high.
Budget vehicles in high demand
Nearly a third of all Auto Trader advert views are for cars priced under £7,000, reflecting the strong appetite for affordable vehicles. Plummer noted that the surge in demand for older, budget-friendly cars is "particularly striking".
Sales of used cars in 2025 are up two per cent year-on-year, whilst new car registrations are forecast to remain flat for the full year. Plummer warned that "the Covid effect is still playing through the UK car market and will continue to do so for years to come".
(PA) Note: This article has been edited with the help of Artificial Intelligence.
