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United Kingdom Used Car Market Size (2024 - 2029)

The United Kingdom used car market is projected to experience significant growth over the forecast period, driven by factors such as re-energized supply chains, stabilized prices, and an increase in electric vehicle sales. The market exhibits a consolidation trend with a few major players dominating, and most vehicles being sourced from the organized sector. Consumer behavior is shifting towards online research, necessitating a blend of online and offline experiences. Despite economic challenges, the demand for affordable second-hand cars remains strong, contributing to the market's positive trajectory. The alleviation of supply constraints has also expanded choices for buyers, further supporting market expansion.

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Market Size of United Kingdom Used Car Industry

United Kingdom Used Car Market Summary
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

United Kingdom Used Car Market 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 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
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United Kingdom Used Car Market Size Summary

The used car market in the United Kingdom is experiencing significant growth, driven by evolving consumer behaviors and the increasing integration of online platforms. The market is characterized by a mix of organized and unorganized players, with major companies like Arnold Clark dominating the offline segment. The shift towards online shopping for used cars is reshaping the industry, offering consumers the convenience of browsing, comparing, and researching vehicles from home. This trend is supported by the high internet penetration and mobile connectivity in the UK, which facilitates access to detailed vehicle information and enhances consumer confidence in making informed purchasing decisions. The market's expansion is further bolstered by the availability of used electric vehicles, which have become more affordable and appealing due to advancements in battery technology and charging infrastructure.

The competitive landscape of the UK used car market is marked by strategic moves from key players aiming to strengthen their market positions. Companies like Cazoo and the Aramis Group are actively pursuing growth strategies, including shifts towards marketplace business models and strategic partnerships, to enhance their offerings and expand their reach. The market's fragmentation is evident with numerous pre-owned car retail outlets, and ongoing acquisitions, such as Marubeni Corporation's stake in HPL Motors Limited, are indicative of the dynamic nature of the industry. Despite challenges like limited supply of used electric vehicles, the market is poised for continued growth, supported by a robust demand for affordable second-hand options and the increasing popularity of online retailing.

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United Kingdom Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Shortened Replacement Cycle for Cars is a Key Driver

    2. 1.2 Market Restraints

      1. 1.2.1 Increasing Shared Mobility Options Pose a Threat

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value USD)

    1. 2.1 By Vendor Type

      1. 2.1.1 Organized

      2. 2.1.2 Unorganized

    2. 2.2 By Fuel Type

      1. 2.2.1 Petrol

      2. 2.2.2 Diesel

      3. 2.2.3 Electric

      4. 2.2.4 Other Fuel Types

    3. 2.3 By Body Type

      1. 2.3.1 Hatchback

      2. 2.3.2 Sedan

      3. 2.3.3 SUVs and MPVs

    4. 2.4 By Sales Channel

      1. 2.4.1 Online

      2. 2.4.2 Offline

United Kingdom Used Car Market Size FAQs

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.

In 2024, the United Kingdom Used Car Market size is expected to reach USD 58.12 billion.

UK Used Car Market Report Snapshots

Used Car Market in UK Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)