How the 2025 Registrations Will Shake Up the Used Car Market

March. A time for daffodils, longer days, and… new car registrations! The arrival of the new registration plate in March always has a ripple effect across the used car market. But how exactly will the 2025 plates impact prices and availability? Let’s have a look at what you might expect. 

The Cascade Effect: New Cars Down, Used Car Prices Follow (Sometimes) 

The influx of brand-new cars onto UK roads inevitably leads to a surge in part-exchanges. Drivers eager to get their hands on the latest models trade in existing vehicles, flooding the used car market with a fresh wave of stock.  

This increase in supply can put downward pressure on prices, particularly for models like those being released. However, it’s not a simple equation. Several factors can influence how prices might shift: 

• Popularity of New Models: If the new releases are highly sought-after, the knock-on effect on the used car market is generally more evident since dealers are likely to be keen to move older models to make space for the new arrivals. 

• Economic Climate: A strong economy generally means higher demand for both new and used cars, which can stabilise prices. Conversely, economic uncertainty can make buyers more cautious, potentially leading to greater price fluctuations in the used car market. 

• Fuel Prices: Fluctuations in fuel cost can also play a role. Rising petrol and diesel prices, for example, could increase demand for more fuel-efficient cars, potentially driving their prices up while other models decrease. 

• Availability of Specific Models: Shortages of certain models, no matter if they are new or used, can drive prices upward. This has been particularly evident recently where global supply chain issues affected the production of some more popular brands. 

• Condition and Mileage: The condition and mileage of a used car are key factors in determining its value. If a vehicle is well-maintained and has low mileage, it will generally hold its value better, even with the arrival of new registrations. 

What to Expect in 2025: 

Predicting the used car market with any level of certainty is impossible. However, we can make some educated guesses: 

• Increased Choice: An increase in part-exchanges will likely offer buyers a greater selection of used cars, particularly in the more popular segments. 

• Potential Price Drops (in some areas): While not a universal rule, some price reductions might be expected, especially for those models directly comparable to the new releases and those with higher mileage. 

• Focus on Newer Used Cars: Buyers might be more inclined to look at newer used cars of just a couple of years old, as they are more likely to offer a better balance of value and modern features. 

• Continued Demand for Popular Models: Certain models, particularly those with a reputation for reliability or fuel efficiency, are likely to remain in high demand and hold their value relatively well. 

Tips for Buyers: 

• Do your research: Use online resources like Auto Trader and Parkers to track prices and get an idea of what you can expect to pay for the model you are after. 

• Be patient: If you’re not in a rush, waiting a few weeks after the new registrations come out could give you more bargaining power. 

• Consider a pre-reg car: These are brand, new cars registered by dealerships but not yet sold. They may offer significant savings compared to a brand-new car with the latest plate. 

• Don’t neglect condition: Even with potentially lower prices, don’t compromise on the condition of the car. Always conduct a thorough inspection. 

Tips for Sellers: 

• Timing is key: If you’re thinking of selling your car, do so before the new registrations arrive to avoid increased competition. 

• Presentation matters: Make sure your car is clean and presentable. A well-maintained car is always more attractive to buyers. 

• Price competitively: Research the market and price your car realistically to attract potential buyers. 

The used car market is dynamic. While new registrations will undoubtedly have an impact, it’s not always the case that used car prices will plummet. By staying informed and doing your research, you can navigate the market effectively, whether you’re buying or selling.