Brits are turning their backs on new cars choosing to buy more older models amid “ongoing economic uncertainty”, according to FTSE 100 giant Auto Trader.
The Manchester-headquartered company said a “standout trend” of 2025 so far is the “growing appetite for affordable used cars”, particularly those aged between five and 10 years old.
Auto Trader has predicted that by the end of the year, there will be 10.1m cars aged between that range s on UK roads – up from 9.2m in 2019 and well above the recent low of 8.7m in 2017.
The business added that vehicles between 10 and 15 years old are also on the rise and are expected to reach 8.5m by the end of 2025, compared to 7.3m in 2019.
It also said that cars at least a decade old are predicted to make up 26 per cent of the UK’s 32.8m cars in 2025, up from 23 per cent in 2019.
Auto Trader said the Covid-19 pandemic’s impact on new car production is also being seen in the shortages of vehicles aged between three and five years old.
The business has predicted that just 2.9m cars of that age range will be on UK roads by the end of 2025, down from 4.8m in 2019 and a new all-time low.
However, Auto Trader did say that Britain’s car market is still set to hit its highest level since 2019 this year, with 9.75m new and used vehicles expected to be sold by the end of the year.
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Covid-19 still impacting the car market
Ian Plummer, commercial director at Auto Trader, said: said: “UK car sales are on course to reach their highest level for six years, which is testament to the underlying strength of consumer demand.
“Added to that we’ve seen more than half a billion visits to our website in the first half of this year – an all time high.
“What’s particularly striking is the surge in appetite for older, budget-friendly vehicles – especially those aged 5 to 10 years – which are now the fastest-selling part of the market.
“The Covid effect is still playing through the UK car market and will continue to do so for years to come.”
Auto Trader has reported a 16 per cent rise in new car views in June and added that the government’s newly launched Electric Car Grant (ECG) has sparked a surge in demand for more affordable EVs.
The company said electric enquiries jumping from 15 per cent to 25 per cent within 24 hours of the announcement.
However, the firm warned that the outlook overall remains cautious, with full-year new car registrations expected to remain flat at around 1.96m.