The UK used car market is expected to see ‘modest’ growth over the next few years, according to Cox Automotive.
The data firm said annual used car transactions were expected to rise from 7.4 million in 2024 to nearly 7.9 million by 2027.
Cox Automotive said that the used market would be affected by economic conditions. It said modest declines in UK interest rates were expected over the next few years, though inflation remained above historical averages, limiting consumer purchasing power, and resulting in many viewing used cars as a more financially viable alternative to higher-priced new vehicles.
Cox Automotive insight director Philip Nothard said: “Our data suggest economic pressures will continue to influence consumer behaviour.
“While new car prices rise, affordability concerns and a strong demand for lower-cost alternatives are likely to keep used car sales steady.
“With ongoing supply constraints and a shrinking car parc, we expect vehicle values for certain in-demand segments, particularly ICE, to remain high.”
