United Kingdom Used Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 58.12 Billion |
| Market Size (2029) | USD 89.32 Billion |
| CAGR (2024 - 2029) | 11.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Used Car Market Analysis
The United Kingdom Used Car Market size is estimated at USD 58.12 billion in 2024, and is expected to reach USD 89.32 billion by 2029, growing at a CAGR of 11.70% during the forecast period (2024-2029).
The UK used car market exhibits consolidation, with a limited number of major players, both organized and unorganized. Most used cars are sourced from the organized sector, claiming more than half the market share. Arnold Clark is a dominant player in the offline used car market in the United Kingdom.
- Consumer behavior in the used car market is evolving, with more buyers making decisions after online research. This emphasizes the need for a seamless integration of online and showroom experiences, facilitating the sharing of product information, providing sales support, and enabling online servicing. Online platforms could introduce additional services, allowing users to explore upcoming or ongoing used car auctions nearby.
- The growth in the UK used car market is attributed to re-energized supply chains, stabilized prices, and a record year for electric vehicle (EV) sales. Despite the rising living costs, consumers turned to more affordable second-hand options, contributing to the overall positive performance of the used car market.
- In 2023, the used car market in the United Kingdom experienced substantial growth of 5.1% and reached 7,242,692 transactions, according to the Society of Motor Manufacturers and Traders (SMMT). This growth trend persisted for all four consecutive quarters, resulting in 351,915 more individuals opting for second-hand cars compared to 2022.
- The increased availability of used vehicles, stemming from the alleviation of supply constraints observed in the previous year, provided buyers with a broader range of choices.
Overall, the used car market in the United Kingdom is expected to continue growing steadily during the forecast period.
United Kingdom Used Car Market Trends
Online Segment Expected to be the Fastest Growing Segment
- The increasing trend of online shopping for used cars in the United Kingdom can be attributed to several key factors. The convenience and accessibility offered by online platforms have revolutionized the car-buying experience. Consumers can now browse various used cars, compare prices, and gather detailed information about each vehicle from their homes. This shift toward digital platforms aligns with the broader trend of online shopping preferences, providing a hassle-free and time-efficient alternative to traditional showroom visits.
- There were 66.33 million internet users in the United Kingdom at the start of 2024, when internet penetration stood at 97.8%.
- A total of 88.86 million cellular mobile connections were active in the United Kingdom in early 2024, which is equivalent to 131.0% of the total population.
- Moreover, the transparency and abundance of online information play a crucial role in the online used car shopping surge. Buyers can access detailed vehicle histories, reviews, and specifications, empowering them to make informed decisions. The ability to research extensively before making a purchase instills confidence in consumers, especially when dealing with the significant investment associated with buying a used car. Online platforms often provide comprehensive details about a vehicle's condition, mileage, and service history, fostering trust between buyers and sellers.
- Moreover, online platforms also enable users to explore upcoming or ongoing used car auctions, expanding their options and providing a dynamic marketplace. This convergence of online and offline elements creates a holistic approach to car shopping, catering to modern consumers' evolving preferences and expectations in the United Kingdom.
- Hence, due to the increasing popularity of online retailing, the online sales segment is expected to see substantial growth during the forecast period.
Electric Vehicle Type Expected to Witness Significant Growth Rate During the Forecast Period
- Used electric vehicle prices have remained affordable for consumers in recent years, making them a significant driving factor in used electric car sales. According to price analysis over the last few years, used electric vehicles have been less expensive than hybrid vehicles. In the luxury vehicle segment, electric vehicle characteristics such as technology-driven performance provide a status symbol and support sustainability, resulting in significant volume demand for used EVs.
- As per the SMMT 2023 report, sales of used battery electric vehicles (BEVs) soared by 81.8%, accounting for a record 1.7% market share. The increase equates to an additional 72,583 transactions compared with the same period in 2022. This development indicates sustained growth in the new car market and improving availability.
- The robust performance also extended to hybrid and plug-in electric cars, which saw sales climbing by 40.0% and 25.1%, respectively. Collectively, used electrified vehicles captured a 5.6% market share, marking an increase from 4.0% in 2022.
- However, the growth of the used EV market in the United Kingdom faces challenges such as a limited supply of used EVs, which leads to higher prices compared to traditional used cars.
- Overall, ongoing advancements in battery technology and the expansion of charging infrastructure are likely to further boost the appeal of used EVs in the United Kingdom.
United Kingdom Used Car Industry Overview
The used cars market in the United Kingdom is fragmented, with slight variations in market share held by the players. This is attributed to the increased number of pre-owned car retail outlets. Arnold Clark, Cazoo, and the Aramis Group are among the major players. To maintain their market positions, these companies are pursuing various growth strategies.
For instance, in January 2023, Marubeni Corporation, acting through Marubeni Auto Investment UK Limited (MAIUK), acquired an 80% stake in HPL Motors Limited (HPLM). HPLM serves as the holding company for Heaton Park Garage Limited (HPL), operating three specialized used car stores near Manchester. This acquisition strengthens Marubeni's presence in the automotive sector, particularly in the dealership business, expanding its reach in key locations like Manchester and London in the United Kingdom.
United Kingdom Used Car Market Leaders
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Cinch Cars Limited
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Constellation Automotive Group Limited
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Arnold Clark Automobiles Limited
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Aramis Group
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Cazoo Ltd.
*Disclaimer: Major Players sorted in no particular order
United Kingdom Used Car Market News
- March 2024: Cazoo Group Ltd declared its plans to shift toward a marketplace business model. This strategic move aims to capitalize on the established Cazoo brand and its robust e-commerce platform, which has been a market leader in online automotive retailing. The transition will bring advantages to the 13,000 car dealers operating in the fragmented used car market in the United Kingdom. Cazoo envisions leveraging its platform to create a marketplace that facilitates and enhances the interactions between buyers and sellers in the dynamic automotive retail landscape.
- October 2023: Assurant, a business service company, entered into a strategic partnership with Hyundai Motor UK to provide a five-year extended warranty for all eligible used car purchases. This is one of the longest-used vehicle extended warranties to be provided by a manufacturer in the United Kingdom.
- August 2023: Cazoo, the British online auto marketplace, released positive financial results for the second quarter and first half of 2023. This comes after the strategic decision to exit European businesses, focusing exclusively on its home turf in the United Kingdom. The move appears to have yielded favorable outcomes, contributing to the upbeat financial performance reported by Cazoo during this period.
UK Used Car Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Shortened Replacement Cycle for Cars is a Key Driver
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4.2 Market Restraints
- 4.2.1 Increasing Shared Mobility Options Pose a Threat
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value USD)
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5.1 By Vendor Type
- 5.1.1 Organized
- 5.1.2 Unorganized
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5.2 By Fuel Type
- 5.2.1 Petrol
- 5.2.2 Diesel
- 5.2.3 Electric
- 5.2.4 Other Fuel Types
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5.3 By Body Type
- 5.3.1 Hatchback
- 5.3.2 Sedan
- 5.3.3 SUVs and MPVs
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5.4 By Sales Channel
- 5.4.1 Online
- 5.4.2 Offline
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles*
- 6.2.1 Arnold Clark Automobiles Limited
- 6.2.2 Constellation Automotive Group Limited
- 6.2.3 Cinch Cars Limited
- 6.2.4 Aramis Group
- 6.2.5 Cazoo Ltd
- 6.2.6 Motors.co.uk Limited
- 6.2.7 Auto Trader Limited
- 6.2.8 Carcraft.co.uk
- 6.2.9 Car Giant Limited
- 6.2.10 McCarthy Cars (UK) Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Organized Market Space Will Witness Increased Prominence During the Forecast Period
United Kingdom Used Car Industry Segmentataion
A used car is one that had one or more owners before. Used cars are sold in various locations, including rental car companies, franchise and independent car dealers, auctions, and private party sales.
The UK used car market is segmented by fuel type, body type, vendor type, and sales channel. By fuel type, the market is segmented into petrol, diesel, electric, and other fuel types. By body type, the market is segmented into hatchbacks, sedans, SUVs, and MPVs. By vendor type, the market is segmented into organized and unorganized. By sales channel, the market is segmented into online and offline. The report covers the market size and forecasts in terms of value (USD) for all the above segments.
| By Vendor Type | Organized |
| Unorganized | |
| By Fuel Type | Petrol |
| Diesel | |
| Electric | |
| Other Fuel Types | |
| By Body Type | Hatchback |
| Sedan | |
| SUVs and MPVs | |
| By Sales Channel | Online |
| Offline |
UK Used Car Market Research FAQs
How big is the United Kingdom Used Car Market?
The United Kingdom Used Car Market size is expected to reach USD 58.12 billion in 2024 and grow at a CAGR of 11.70% to reach USD 89.32 billion by 2029.
What is the current United Kingdom Used Car Market size?
In 2024, the United Kingdom Used Car Market size is expected to reach USD 58.12 billion.
Who are the key players in United Kingdom Used Car Market?
Cinch Cars Limited, Constellation Automotive Group Limited, Arnold Clark Automobiles Limited, Aramis Group and Cazoo Ltd. are the major companies operating in the United Kingdom Used Car Market.
What years does this United Kingdom Used Car Market cover, and what was the market size in 2023?
In 2023, the United Kingdom Used Car Market size was estimated at USD 51.32 billion. The report covers the United Kingdom Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the factors driving the United Kingdom Used Car Market?
The factors driving the United Kingdom Used Car Market are a) Rising new car prices pushing consumers towards more affordable used car options. b) Advancements in car technology and maintenance practices extending the lifespan of used cars
What are the factors driving the United Kingdom Used Car Market?
The factors driving the United Kingdom Used Car Market are a) Rising new car prices pushing consumers towards more affordable used car options. b) Advancements in car technology and maintenance practices extending the lifespan of used cars
UK Used Car Industry Report
The used car market in the United Kingdom is experiencing notable growth, driven by the demand for affordability, quality, and access to modern automotive technology. This market is segmented by vendor type, fuel type, body type, and sales channel, with organized channels such as dealer chains and online marketplaces seeing significant expansion. Advanced technologies like AI and blockchain are enhancing the buying experience, improving touchpoint management, and providing financial assistance.
The market trends indicate a diverse range of options, including compact cars, SUVs, and mid-size vehicles in both petrol and diesel. Despite challenges from rising car subscription services, the market remains robust. The market forecast and market size are crucial components of understanding this sector, providing insights into future growth and trends.
Industry analysis and industry reports offer comprehensive details, including market share, market value, and growth rate. These reports highlight the importance of the organized segment, which benefits from technological advancements and better customer service. Industry outlook and industry trends also play a vital role in shaping market strategies and decisions.
For those seeking detailed insights, industry research and market data provide valuable information on market segmentation and market predictions. The market overview and market review sections of these reports offer a thorough understanding of the current state and future potential of the UK used car market. The report PDF is available for download, offering a complete industry analysis and market outlook.
