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UK Used Car Market Research Report to 2023: Ken Research
November 2019

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What is the Current Potential of the UK Used Car Market?

UK Used Car Market is at a late growing stage. The UK used car market in terms of GTV has increased at a positive CAGR of ~% during the review period 2013-2018. This growth was supported by increased used car sales in the country. The average ticket price has also increased by a double digit positive growth rate during the period 2013 to 2018. In addition, there has been a surge in the used car market in UK due to an increase in the trade values. The used car market experienced a growth during the period 2013 to 2018 owing to the increase in sales of hybrid, plug-in hybrid and battery electric cars in the UK automotive space. The used car market was stimulated due to strong consumer confidence and rising business profit levels encouraged customers to replace vehicles more often.

The used to new car ratio has been found around ~ in 2018. There has been an increasing trend in the car parc, having a CAGR of approximately ~% during the period 2013 to 2018. The increase in the used car sales has positively impacted the car parc in the UK. In 2015, used car market experienced a drop due to soaring prices of the used cars, owing to which the sales declined in the country. This was coupled by the heavy supply and the weakening demand which directly impacted the retail outlets. The decreasing demand for diesel cars impacted the growth of the used cars across the region. The disposable income growth dropped in the year 2015 due to which the consumer spending decreased, thereby, imposing a negative impact on the used car GTV in 2015 and 2017.

UK Used Car Market Segmentation

By Market Structure (Organized and Unorganized Market): The organized used car sector, which consists of the OEM-certified used cars and the multi brands used car dealerships, constitute a market share of roughly ~ % in terms of used cars sales volume across the region. The organized used car market is dominant in the overall used car space in UK owing to the fact that they offer documentation regarding the stringent inspection process, MOT and transfer of ownership. Organized sector provides high quality duly certified used cars which are carefully inspected and usually cause no discrepancies. They also offer the after sales services due to which the customers are attracted more towards the organized dealerships as compared to the unorganized dealers in the UK.

By Type of Cars (MPVs / Sedans, Economy / Hatchbacks and SUVs): Hatchback is the type of car which has captured the biggest portion in the market share. It has almost ~ % market share in the UK used car market in 2018. This is followed by SUV’s and then Sedans owing to higher used car prices of this category.

By Kilometers Driven: Old-age vehicles with an average ownership period of 6-8 years or above are exposed towards high wear and tear therefore, increasing their overall vehicle maintenance cost. Pre-owned cars falling in the range of 20,000-80,000 km driven collectively dominated UK used cars market along with volume share of ~% therefore, evaluated at ~ thousand units in the year 2018.

By Manufacture Year: Cars manufactured during the period 2009-2018 dominated UK used cars market along with a massive collective volume share of ~ % thus, evaluated around ~  thousand units during 2018. This segment recorded highest sales owing to the fact that potential buyers had a large variety of used car models to choose from. The least market share is being captured by the used cars manufactured before the year 2002.

What is the Competition Scenario in the UK Used Car Market?

The competition in the UK used car market has been observed to be highly fragmented with a huge number of used car dealerships present in the UK market. The OEM-certified dealers and multi brand dealers make up the organized space in used car market which accounts around ~% of the market share in 2018. The online website is more prevalent in the organized sector for lead generation as compared to the unorganized sectors. Local dealers and the individual sellers’ together form the unorganized space in the overall used car market in UK, which accounts for approximately ~ % market share in the country, 2018. Competition in tier two and tier three cities is comparatively low in comparison to metropolitan cities of the UK. There are many local dealers, small garages and many individual sellers which forms the unorganized space, constituting approximately ~ % in the used car market in UK.

Most of the lead generation of the used car is contributed from the offline dealership stores. About ~% of the used car sales are being generated from the offline stores and only ~% lead is generated from the online websites of the used cars.

Parameters on the basis of which the used car dealerships compete are number of network chains, marketing initiatives, certification, margins, price, after sales services, lead generation, types of warranty, brand partnerships and number of dealers.

Key Segments Covered

Market Structure

Organized Sector

By Sales Channel (Multi-Brand Dealers and OEM-certified Dealers)

By Lead Generation (Dealerships Walk-ins and Online Car Portals)

Unorganized Sector

By Sales Channel (C2C and Local Dealerships)

By Lead Generation (Dealerships Walk-ins and Online Car Portals)

Type of Used Cars

MPVs / Sedans

Economy / Hatchbacks

SUVs

Kilometers Driven

Less than 5,000 km

5,000-20,000 km

20,000-50,000 km

50,000-80,000 km

80,000-120,000 km

Above 120,000 km

Year of Manufacture

< 2000,

2000-2002

2003-2005

2006-2008

2009-2012

2013-2018

Key Target Audience

Offline Dealers

Online Portal

Organized Multi Brands Dealers

OEM Certified Dealerships

Online Portal

Private Equity and Venture Capitalist

Industry Associations

OEM Manufacturers

Automotive Manufacturers

Car Auction Companies

Time Period Captured in the Report:

Historical Period - 2013-2018

Forecast Period - 2018-2023

Online Companies Covered:

Carsnip

Autovillage.co.uk

Auto Trader Group PLC

Motors.co.uk

Desperate Sellers

Exchange and Mart

Gumtree

Inchcape PLC

Bristol Street Motors

Offline Companies Covered:

Mazda Approved Used Cars

Pendragon PLC Group

Toyota Plus Approved Used Cars

Sytner Group

Lookers Group

Marshall Motors

Vertu Motors

Key Topics Covered in the Report

Introduction to the UK Used Car Market

UK Used Car Market Size, 2013-2018

UK Used Car Market Segmentation, 2018

Trends and Developments in UK Used Car Market

Issues and Challenges in UK Used Car Market

Decision Making Process in UK Used Car Market

Customer Pain Points in UK Used Car Market

UK Used Car Auction Market

Online Comparative Landscape in UK Used Car Market

Offline Comparative Landscape in UK Used Car Market

Government Regulations in UK Used Car Market

Business Model in Online Used Car /Market

Working Model in the UK Used Car Market

OLX Used Car Success Story

UK Used Car Market Future Outlook and Projections, 2018-2023

Analyst Recommendation for UK Used Car Market

For information click on the below mentioned link:

UK Used Car Market

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Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

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