Following the disruption caused by the pandemic, the used car market is gradually returning to more normal trading conditions. Transaction rates remain positive, while demand has reportedly increased by around 7%. Supply has also risen slightly, according to industry reports.
However, market conditions vary depending on the type of vehicle. Cars aged between three and five years old remain in relatively short supply due to reduced new car production and sales during the Covid-19 pandemic. Meanwhile, the used electric vehicle (EV) market has expanded significantly, with far more used EVs now available compared with pre-pandemic years.
With prices dropping across the second‑hand market, this breakdown of used car mileage vs age helps buyers understand which factors matter most when hunting for the best deals.
Why Are Used Car Values Falling?
Used car values have experienced significant fluctuations over the past few years. After reaching unusually high levels during and after the pandemic, prices have started to fall more noticeably across many areas of the market.
Several factors are contributing to this shift:
Supply and Demand
As new car production continues to recover, more vehicles are gradually entering the used market. At the same time, economic pressures and changing consumer spending habits are influencing buyer demand.
Pandemic Disruption
During the pandemic years, manufacturers struggled with supply chain issues, production delays, and reduced fleet sales. Dealers also faced operational restrictions during lockdowns. These combined factors created shortages in the used car market, pushing prices upwards for an extended period.
As supply improves, prices are beginning to stabilise.
Consumer Confidence and Affordability
Despite falling used car values, consumer confidence in the market remains relatively strong. Increased affordability is encouraging more buyers to consider used vehicles, particularly as household budgets remain under pressure.
Industry experts have also highlighted the difference between wholesale auction prices and retail pricing. Dealers are increasingly focusing on realistic retail values rather than reacting solely to fluctuations in auction markets.
Used EV Bargains
While depreciation can be frustrating for new EV owners, it has created opportunities for used car buyers.
Many electric vehicles that were previously considered expensive are now entering the second-hand market at significantly lower prices. As a result, used EVs are becoming far more accessible to a wider range of motorists.
The rapid increase in used EV stock means buyers now have more choice than ever before, and this trend is expected to continue as electric vehicle adoption grows.
And once you’ve secured a bargain, this guide on what to do after buying a used car walks you through the essential steps to get everything road‑ready.
Final Thoughts
Although the used car market continues to evolve, falling prices and improving supply levels are positive developments for consumers.
For buyers, increased affordability and greater availability — particularly in the used EV market — could make now an excellent time to explore second-hand car options.
And to keep any used car running smoothly long after purchase, our maintenance guidance hub covers the checks and habits that help avoid unexpected repair costs.
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