The State of the UK Used Car Market as 2025 Ends

As drivers prepare for 2026, now is the perfect time to take a clear look at where the used car market stands and what the end of 2025 really means for buyers and sellers. Whether you are searching for your next used car, planning to sell, or simply curious about how the market has evolved, this end of year breakdown gives you the full picture backed by real-world trends, consumer habits, and the key insights from millions of car history checks at TopCarCheck.co.uk.

Price Trends as 2025 Ends

After two years of rapid inflation, used car prices finally cooled in mid-2025. They did not drop dramatically, but the pace slowed enough to give buyers breathing room. The average used car price ended the year roughly 3 percent lower than in January.

Key trends:

• Small petrol cars held their value best thanks to low running costs

• Diesel prices continued to soften, especially older models

• Used EV values stabilised after two years of steep drops

• PCP returns helped replenish supply

• Cars under £5,000 remained in high demand with tight supply

The biggest change was the return of normal depreciation curves. Buyers are once again finding reasonably priced options if they shop smart.

Demand Shifts – What UK Buyers Wanted Most

Certain segments performed far better than expected:

1. Small petrol hatchbacks

Cars like the Ford Fiesta, Toyota Yaris, and Hyundai i10 remained the UK’s favourite used purchases. Their affordability, simple mechanics, and cheap insurance levels kept demand high all year.

2. Crossovers and compact SUVs

Buyers love space and comfort, and models like the Nissan Qashqai and Kia Sportage dominated online searches.

3. Used EVs with realistic range

The EV crash of 2023 and 2024 ended, leaving behind stable demand for mid-range EVs like the Kia Soul EV and Nissan Leaf 40kWh models.

4. Older diesels for long-distance drivers

Despite clean air zone restrictions, affordable diesels still sold extremely well to high-mileage buyers outside major cities.

The Unexpected Losers of 2025

Some models quietly fell out of favour:

• Luxury SUVs became too expensive to insure

• Large diesels took big hits in cities

• Older hybrids lost value due to battery concerns

• Some MPVs were simply replaced by SUVs in family budgets

Even previously popular models struggled as buyers became far more conscious of running costs during the second half of 2025.

The Role of Finance in 2025 Market Behaviour

High APR rates early in the year pushed buyers toward cheaper cars.
By autumn, lender competition returned, and PCP and HP deals became more attractive again.

Many buyers opted for:

• Shorter terms

• Higher deposits

• Cheaper models

• Cars with better reliability history

Finance shaped buyer choices more directly than at any point since 2020.

TopCarCheck Data – What History Checks Revealed in 2025

Millions of car history checks showed clear patterns:

Buyers became more aware of vehicle history risks, and end-of-year checks spiked strongly as drivers looked for safe winter deals.

What to Expect Moving Into 2026

Based on 2025 data, the year ahead may bring:

• More stable used EV prices

• Growing demand for ULEZ-friendly petrol cars

• Increased use of digital vehicle checks before viewings

• Better stock availability

• More car finance flexibility

Final Thoughts

2025 has been a year of recovery, reset, and renewed confidence in the UK used car market. Prices have stabilised, demand has diversified, and buyers have become more informed than ever. As the year closes, the used market is healthier and more predictable than at any point since 2020. Anyone preparing to buy in early 2026 will benefit from the groundwork laid this year.

Before buying, always run a full vehicle history report at TopCarCheck.co.uk to avoid hidden risks and secure complete peace of mind.