Used Car Market Trends in the UK: October 2024

The used car market in the UK has shown remarkable resilience and adaptability in October 2024. Despite economic uncertainties and fluctuating consumer confidence, the market continues to thrive, driven by a combination of steady demand and evolving supply dynamics. Here’s a detailed look at the current trends shaping the used car market this month. 

  1. Market Stability Amid Price Adjustments

In October 2024, the UK used car market has maintained its stability, even as values experienced a modest dip. According to the latest data from Cap HPI, used car prices have fallen by only 0.5% in the first part of October, with projections indicating a total decrease of about 1% by the end of the month1. This slight decline is attributed to a balanced supply-demand equation, where steady consumer interest meets a well-managed inventory. 

  1. Surge in Electric Vehicle (EV) Listings

One of the most notable trends is the significant increase in electric vehicle (EV) listings. Marketcheck UK reports a dramatic surge in used Tesla listings, reflecting the growing popularity of EVs in the second-hand market. As of October 1st, 2024, Tesla listings grew by 71% compared to the same date in 20232. This surge is driven by a combination of increased consumer awareness, government incentives, and the expanding infrastructure for EVs. 

  1. Regional Variations in Market Dynamics

The used car market in the UK also exhibits regional variations. The South East continues to lead in terms of transactions, with a high volume of used cars changing hands. This region’s robust economic activity and higher disposable incomes contribute to its strong performance in the used car sector3. 

  1. Impact of Economic Factors

Economic factors such as inflation and interest rates have a direct impact on the used car market. Higher interest rates have made financing more expensive, which in turn has led some consumers to opt for used cars over new ones. This trend is expected to continue as long as economic conditions remain challenging. 

  1. Consumer Preferences and Popular Models

Consumer preferences are also evolving, with a noticeable shift towards more fuel-efficient and environmentally friendly vehicles. The demand for hybrid and electric cars is on the rise, while traditional petrol and diesel models are seeing a gradual decline in popularity. The Ford Fiesta remains one of the most popular used cars in the UK, reflecting its reliability and affordability. 

  1. Technological Advancements and Online Sales

The role of technology in the used car market cannot be overstated. Online platforms and digital marketplaces have made it easier for consumers to compare prices, check vehicle histories, and make informed purchasing decisions. This digital shift has also enabled dealers to reach a broader audience and streamline their sales processes. 

  1. Future Outlook

Looking ahead, the used car market in the UK is expected to remain robust. The ongoing transition to electric vehicles, coupled with technological advancements and changing consumer preferences, will continue to shape the market. Dealers and consumers alike will need to stay informed and adaptable to navigate the evolving landscape. 

Conclusion 

The used car market in the UK is navigating through October 2024 with a blend of stability and adaptability. While prices have seen a slight dip, the overall demand remains strong, particularly for electric and hybrid vehicles. Regional variations, economic factors, and technological advancements are all playing crucial roles in shaping the market dynamics. By staying informed and leveraging digital tools, both buyers and sellers can make the most of the opportunities in the used car market.