Used car prices are on track for price rises in 2025 as the slump in new car sales during Covid takes its toll on available stock.

Autorola UK country manager Neil Frost

In 2022, just 1.6 million new cars were registered – down 2.0% on Covid-afflicted 2021 and 30%, or some 700,000 units, on 2019 prior to the pandemic.

Three years on and Autorola expects 2025 will experience a shortfall of between 500,000 and 700,000 used cars coming into the market, with prices rising as demand exceeds supply.

“Q4 2024 provided us with an early sign of used prices rising and this trend will continue throughout 2025 and into 2026 because of the large shortfall in used cars coming into the market,” said Autorola UK’s country manager Neil Frost.

“That means strong competition for used stock in the wholesale market which will translate into higher retail prices for consumers,” he added.

In the last quarter of 2024, the used car market recorded an unseasonal rise in prices for all four fuel types on Autorola’s online platform.

Petrol cars bounced back from Q3 to Q4 with a 6.4% increase (£934) to £14,454 at 40 months and 22,486 miles, while hybrids delivered a 3.1% price increase (£663) in the same period to £21,386 at 35 months and 20,018 miles.

EV prices also saw a 3.1% rise in Q4 (£381), reaching £18,668 at 28 months and 17,514 miles while diesel cars reported a small £125 price rise (0.7%) to £18,668 at 43 months and 32,607 miles, as market share for the fuel type fell to a record low of just 17.2%.

Petrol remained the dominant fuel type in Q4, taking 61.9% of used cars sold online, hybrids rose to 17.8%, while EVs fell back to just 3.0%.