UK used car buyers favour three to four-year-old used vehicles, with demand significantly outpacing supply, according to Indicata.
The Indicata Market Watch report reveals that vehicles in this cohort account for 25.8% of used-car sales despite representing only 22.6% of available stock.
Dean Merritt, Indicata UK’s national retail strategy manager, said: “Three- to four-year-old vehicles appear to have found the ideal balance between desirability and value.
“Buyers can access contemporary safety features, technology and efficiency benefits while avoiding the higher prices associated with nearly new vehicles.”
Cars under two years old account for 28.4% of stock but generate 24.9% of sales.
Vehicles aged five years and over are balanced, with 49.2% of sales against 48.9% of stock.
UK used car buyers are leaning towards vehicles that offer a balance between modern technology and affordability, particularly as economic pressures continue to influence purchasing decisions.
The strong performance of three- to four-year-old vehicles is especially evident in EVs.
At this age, many EVs have already absorbed much of the significant value correction seen since 2023, making them more accessible.
Lower acquisition prices are increasingly offsetting concerns around charging infrastructure, driving range, battery ageing and the pace of technological change.
Petrol remains the dominant force in the used-car market while petrol vehicles accounted for 43.4% of all used-car sales and 41.9% of stock in July, continuing to outperform their supply share.
Sales share has declined from 48.4% in July 2024, but demand remains robust.
Indicata reports that petrol vehicles have 46 days’ supply in the market, while the retail price index stands at 112.01% of its January 2020 level.
