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The used car market is expected to remain robust in 2025, with diesel and petrol performing similarly in price trends. Hybrids will continue to show resilience, and battery electric vehicles (BEVs) will stabilise after previous declines, though variability by model may continue.
BEVs continue to attract cautious dealer interest, and although some prices have plummeted since 2022, recent buyer demand suggests renewed interest. Discounts in new BEV prices occasionally make new options more affordable than used, further impacting used BEV valuations. As infrastructure grows and clean air policies expand, demand for BEVs could gradually rise, though price volatility is anticipated in the near term.
Interest rates influence consumer financing choices, impacting affordability for used car buyers. Dealers are leveraging incentives like lower APRs to support sales. Supply challenges are less severe than in previous years, supporting a gradual rise in new car registrations by 2025, though geopolitical issues could influence long-term production stability.
The regulatory landscape surrounding the 2035 ban on new internal combustion engine vehicles will shape market trends. If reinstated in 2030, this policy shift could provide a short-term demand boost but won’t dramatically alter trade values unless further legislative mandates follow.
Overall, the industry faces a landscape of evolving consumer preferences, regulatory pressures, and macroeconomic factors that underline the importance of adaptable forecasting to guide manufacturers and dealers toward sustainable growth in a complex market.
Dylan Setterfield is head of forecast strategy at cap hpi
Further insight into industry-shaping trends of 2025 will be available in our November/December issue.