The car market in the UK has just completed one of the most significant years in ten years. For a long time, 2025 has been able to provide some stability after a period of uncertainty as a result of the global shortages of parts and the changing economic rules.
If you’re buying a car, the rules of the new and used car sales game have changed. From the return of the “two-million-car year” to the massive growth in electric vehicle (EV) sales, there is a lot to talk about.
In this article, we break down the latest UK car market trends and show you what you need to know before purchasing your next vehicle.
Key Takeaways
- New car sales surpassed 2 million units in 2025 for the first time since the pandemic.
- Electric vehicles now account for nearly 1 in 4 new car registrations.
- Used car sales in the UK remained strong, though supply for 3–5-year-old models is still tight.
New Car Sales in the UK: Breaking the 2 Million Barrier
The industry had been waiting years to see the market go back to normal. At last, we can say that it was 2025. The figure of new cars entering the British roads exceeded 2 million, the first time since 2019.
Why 2025 was a Milestone Year
The latest figures for the year 2025 indicate that 2,020,520 new vehicles were registered in the UK. This is a 3.5% jump from 2024. This expansion indicates that despite the high interest rates, the people and the businesses are willing to invest in newer and efficient technology.
Nevertheless, there is the consideration of who is doing the buying. More than half of these sales (59.1%) were made by fleets-big firms that purchase cars for their workers. Although the number of private buyers going back to the showrooms is on the rise, there are many who are being careful with their money.
Top Brands and Models that Defined the Year
When you look out your window today you will find that you will probably see the same few brands taking over the streets. VW has retained the top position of the favourite car brand in the UK over the last five years.
The Reign of the Ford Puma
The Ford Puma was the UK’s best-selling car in three years in a row. In 2025 alone, Ford sold more than 55,000 of these small SUVs. Apparently, the Puma has managed to bridge the gap that existed in place of the Ford Fiesta and provide the practicality and style that British families adore.
Volkswagen’s Dominance as a Brand
Although Ford is the best model, Volkswagen is the best manufacturer. They have more than 178,000 sales giving them a tremendous advantage over competitors. Customers are confident that the Vee-Dub badge is reliable and sellable, despite switching to the electric “ID” line of the brand.
The Top 5 Best-Selling Models of 2025
Rank | Model | Total Sales |
1 | Ford Puma | 55,488 |
2 | Kia Sportage | 47,788 |
3 | Nissan Qashqai | 41,141 |
4 | Vauxhall Corsa | 35,947 |
5 | Nissan Juke | 34,454 |
Used Car Sales in the UK: Navigating a Tight Supply
Although we are all excited about new cars, the used car sales in the UK are the area where most people are involved. In 2025, around 7.7 million used cars had been traded. This is a very strong market, although it has its own peculiarities, which present certain challenges.
The Persistent “Pandemic Gap” in Stock
Did you notice it is more difficult to find a relatively new car, three to five years old? We call this the Pandemic Gap. The number of cars of that age in today’s market is approximately 1.8 million lower than it was in 2019 due to the factories being shut down or the reduction between 2020 and 2022.
This shortage means that you will need to pay a premium to have a car from the year 2021 or 2022. The demand for these vehicles is high due to the availability of modern safety technology at a price lower than a new vehicle.
Price Trends: Where the Bargains Are (and Aren’t)
The prices of used cars have remained exceptionally stable during the year. In late 2025, the average price of a used car was approximately £17,103. Prices of younger cars have slightly reduced, but on the other hand, older cars are even becoming expensive.
High Demand for Older, Affordable Cars
One of the most surprising UK car market trends in 2025 was the price jump for cars aged 10-15 years old. These “budget” cars saw price increases of over 8%. Why? Because as the cost of living remains high, more people are looking for affordable, reliable transport under £5,000. This makes it a great time to sell an old run-around, but a tough time to buy one.
The Electric Shift: One in Four Go Green
The UK is abandoning petrol and diesel at a faster rate than anticipated. Battery electric vehicles (BEVs) recorded the highest share in the market of 23.4% in 2025. It implies that almost 1 in 4 new vehicles sold is plug-powered rather than tail-piped.
Breaking Down the Fuel Types
Petrol is still the king of the road, but its lead is shrinking. For the first time, purely petrol and diesel cars made up only about 51% of the new car market. The rest of the market is now split between electric, plug-in hybrids (PHEV), and self-charging hybrids (HEV).
- Electric (BEV): 473,348 sales (23.4% share)
- Hybrids (HEV/PHEV): Over 500,000 sales combined
- Diesel: Only 5.1% of the market (a record low)
The Rise of the Used EV Market
If you are looking for a deal on an electric car, the used market is the place to be. Used EV sales grew by over 45% in 2025. As early adopters trade in their first-generation electric cars, there is now a healthy supply of cars like the Nissan Leaf, Renault Zoe, and even older Tesla Model 3s at much lower prices.
Charging Infrastructure Growth
One of the reasons people feel more confident buying electric vehicles is the charging network. By the end of 2025, there were over 87,000 public charging points across the UK. While we still need more in rural areas, the “range anxiety” that used to scare buyers is starting to fade away.
New Players in the Market: The Chinese Wave
One of the biggest stories of the year is the rise of Chinese car manufacturers. Brands that most people hadn’t heard of five years ago are now top contenders.
How BYD and MG are Changing the Game
MG has been a success story for a while, but 2025 was the year of BYD (Build Your Dreams). BYD’s sales grew by nearly 500% this year, and they actually surpassed Tesla in total registrations in the UK.
These brands are winning because they offer more features for less money. For example, a mid-range BYD or GWM Ora often comes with heated seats, 360-degree cameras, and advanced self-driving tech as standard—things that German brands often charge thousands extra for.
Why a Car History Check is Vital in the UK
With the used car market so busy and prices staying high, the risk of falling for a scam has never been greater. We have seen a rise in “clocking” (winding back the mileage) and sellers trying to hide the fact that a car was previously written off.
Protecting Yourself from Hidden Scams
When you buy a used car, you are not just buying the metal and the tyres; you are buying its history. If that history is messy, it could cost you thousands of pounds down the road.
The Risks of Outstanding Finance
Around 1 in 3 cars checked on the Smart Car Check site have an outstanding finance. If you buy a car that still has a loan against it, the finance company legally owns that vehicle. They can come and repossess it, even if you paid the seller in full. A simple outstanding finance check can prevent this nightmare.
Using Smart Car Check for Peace of Mind
At Smart Car Check, we provide a comprehensive vehicle history report that digs into the records you can’t see with your eyes. Our reports cover ownership records, MOT history, tax details, mileage verification, write-off records, finance checks, stolen car checks, and more.
Conclusion on New and Used Car Sales Trends
The UK car market in 2025 has shown us that the “new normal” is all about choice and technology. With more electric models than ever and the rise of exciting new brands, buyers have plenty of options.
However, with the supply of good-quality used cars still recovering from the pandemic years, you must be careful, and always run a full car check so you can buy and drive away with confidence, knowing you’ve made a smart, safe investment.
New and Used Car Sales Trends FAQ
What was the best-selling car in the UK in 2025?
The Ford Puma was the best-selling model, while Volkswagen was the best-selling brand overall.
Are used car prices going down in 2026?
It’s expected that prices for 1–3-year-old cars will soften as more new cars become available. However, older, affordable cars (under £5,000) will likely stay expensive due to high demand.
What is the forecast for car sales in the UK?
The UK car market is expected to bounce back to its pre-pandemic size, with 10 million car sales predicted for 2026. In 2025, the total market should reach 9.8 million transactions, making it the biggest combined new and used car market since 2019. This growth is set to continue to match the 2019 market size.
How do I know if a car has hidden damage?
The only way to be 100% sure is to run a car history check. This will tell you if the car was ever an insurance write-off or involved in a major accident.
Why is there a shortage of 3-year-old cars?
This is due to the “Pandemic Gap.” Fewer cars were manufactured in 2021 and 2022, so there are fewer of them entering the used market today as 3-year-old vehicles.
