How big is the second hand car market?
The used car market grew to over two million transactions in Q3 with second-hand EVs enjoying record uptake. That is according to new data from the SMMT which has reported 2,021,265 used car sales in the three months to the end of September. The state of the used vehicle market in Q3 2025 The average transaction price (ATP) for 3-year-old vehicles rose to $31,067, up 5% year over year from $29,578 in Q3 2024.
How strong is the used car market?
Used car inventory is surging, with 1,589,491 vehicles listed for sale in the first six months of 2025 which represents an over 30 per cent increase compared to the same period in 2024. This uplift in supply is matched by stable demand, with 1,133,990 used cars sold so far this year, a slight increase on 2024. Here’s why used car prices are dropping The reason for the drop in used car prices is that wholesale prices are dropping. Wholesale values are determined by demand, and when demand drops, so do prices. Another factor contributing to declining used car values is an increase in new car inventory.Used car prices have been slowly going down since COVID, even though there have been some occasional spikes. However, this doesn’t mean the future of the used car market is unstable. On the contrary, the used car business is still full of opportunities to make a good profit.The ongoing shortage of used cars will be with us for years. As a result, you’ll likely still see respectable offers for your used car this month. Searching for a decent price for your trade-in is still a good idea by shopping around. Each dealership tries to keep a balance of vehicles on its lot.
Why is the used car market still so high?
There simply aren’t as many people going to dealerships looking to trade in cars they bought new two, three, or four years ago. And if they are turning up, it’s with vehicles that were more expensive in the first place because of pandemic-era pressures. Here’s why 2025 could be the perfect year to buy a car: Stable Interest Rates: Auto loans, an essential part of financing your car, may become more affordable as interest rates stabilize. Better Inventory: Supply chain improvements mean more choices and potentially lower prices.If you know you will need a car in the next few years, and can afford to buy now, you might avoid even higher prices later. On the positive side, car manufacturer incentives have increased in recent months to their highest level of 2025.
What is the CAGR of the used car industry?
Used Car Market Size and Share Analysis The used car market is estimated to reach a valuation of US$2. Tn by the year 2031, at a CAGR of 6. The state of the used vehicle market in Q3 2025 The average transaction price (ATP) for 3-year-old vehicles rose to $31,067, up 5% year over year from $29,578 in Q3 2024.