15 May 2025
Used-car transactions grew across Europe’s biggest markets in the first quarter of 2025. But does this positivity mask potential struggles ahead? Autovista24 special content editor Phil Curry examines the numbers.
Some of Europe’s big five markets have struggled with new-car registrations in the first quarter of 2025. However, used-car transactions have improved across all regions.
France, Germany and Italy saw new-car declines in the first three months of the year. Meanwhile, Spain and the UK recorded registration growth. Yet, each country’s used-car market saw improvements, as more customers choose an older model as their next car.
This is the second consecutive year all five markets recorded growth between January and March. However, France, Germany and the UK all saw at least one monthly decline in this period. So, used-car markets may not be as stable as last year.
Used-car improvement in France
The French new-car market saw the biggest decline of the big five in the first quarter of the year. Registrations were down 7.8%, with a large decline in petrol deliveries hampering the sector.
However, its used-car market grew in the same period, according to AAA Data. A total of 1.36 million transactions took place between January and March, up 2% year on year.
Yet the country’s used-car market is not in a completely stable position. January saw transactions improve by 7.7%. But February saw sales fall by 1%, followed by a 0.2% decline in March.
So, used-car transactions look to have slowed since the start of the year. Compared with January 2024, 32,750 more units changed hands in the first month of this year. This may help to sustain the market for a few more months, in case of any more minimal declines.
Precarious position
According to AAA Data, sales between individuals are the most dynamic, up 12% in the first quarter of the year. Diesel remained the most popular choice in the used-car market, representing 45% of transactions in March.
Yet, mirroring the new-car market, diesel transactions fell by 7% in the month. Petrol also saw a drop of 4%. Electrified powertrains, including mild hybrids, full hybrids (HEVs), plug-in hybrids (PHEVs) and battery-electric vehicles (BEVs), held a market share of less than 15% in March.
There has been a balancing act in France in recent years. The used-car market declined in 2023, while new-car registrations improved. The situation was reversed in 2024, with used-car transactions up while registrations fell.
The country’s new-car performance so far in 2025 suggests a struggle this year. So, the industry will be looking for a good performance in the used-car sector.
With two consecutive monthly drops, however, the market may not be as stable as hoped. With the small decline in March, the industry will hope that it can maintain consistent growth in the second quarter.
Spain leads the way
Spain emerged as the strongest new-car market in the first quarter of the year, with registrations up 14.1%. This performance has been mirrored in the country’s used-car market as well.
Transactions between January and March were up 8.6% according to Autovista24 calculations, with 516,672 units changing hands in the period.
Each month saw improvement, with January’s figures up 7.7%, while February saw an increase of 5.4%. March was the strongest month of the quarter, as sales surged 12.7%, equating to an improvement of 20,231 units.
According to industry association GANVAM, models aged eight to 10 years saw the greatest growth over the first quarter, up by around 29%. These models were the focus of import transactions, which the industry body stated is the reason for this increase. However, these older models only account for 6.3% of the used-car market.
Sales of models between 10 and 15 years of age increased by 4.5% in the quarter. However, with Spain looking to reduce the average age of its car parc, the fact that models over 15 years old saw an increase of 8.5% between January and March will not be welcome. This age group made up more than 40% of sales in the quarter.
BEVs improve
The country has re-established its MOVES III incentive scheme for new electric vehicles (EVs). This is encouraging for buyers looking to scrap older models. The scheme will look to accelerate EV uptake while removing older models from Spanish roads.
BEV registrations have improved rapidly in the country during the first quarter, and this was mirrored in the used-car market.
According to GANVAM, transactions of all-electric models increased by 53.2% between January and March, reaching 6,079 units and representing 1.2% of the total market. Meanwhile, sales of PHEVs improved by 62.4%, reaching a total of 9,073 units.
Diesel remained the most popular fuel type in Spain’s used-car market, representing 50.8% of transactions in the first quarter. Petrol made up 36.7% of sales, while all other powertrains made up just 12.5% of passenger cars that changed hands.
Modest used-car rise in Germany
Germany’s used-car market registered a modest increase in the first quarter of the year, as its new-car market declined.
In the first three months of 2025, transactions increased by 0.6%, according to data from the KBA. This equated to 1.64 million units. In the same period, the country’s new-car registrations fell by 4.3%.
The figures were driven by a strong January, as used-car sales increased 6.9%, with 36,281 more units changing hands. However, the country struggled in February, with a 5.2% drop in the new-car market. This was a 28,671-unit difference.
March saw a return to growth, albeit by just 0.5%. Therefore, in the first quarter, German transactions improved by just 10,361 units. However, the KBA does not dissect transactions by powertrain, making it difficult to see how each technology is performing.
Good used-car performance in Italy
The Italian used-car market improved by 4.7% in the first quarter of 2025, as 1.47 million units changed hands. This contrasts with the country’s new-car market, which during the first three months of the year saw a 1.6% decline.
According to industry association ANFIA, transactions in Italy improved by 3.7% in January. February saw numbers increase by 4.6%, while March was the used-car market’s strongest month, as sales grew by 5.8%.
UK continues its growth streak
The UK’s used-car market was the largest in terms of volume during the first quarter of the year. According to the SMMT, a total of 2.02 million units changed hands in the period. This was the first time since before the COVID-19 pandemic that the sector has seen more than two million transactions.
This represented a 2.7% increase compared to the same period last year. It also marked the ninth consecutive quarter of improvement in the country.
In the same period, the country’s new-car market achieved growth of 6.4%, thanks to a very strong result in March. This offset two months of decline in January and February.
The used-car market got off to a slow start, with a 1.4% improvement in January. In February, transactions fell by 0.3%, but March saw a strong bounce, with sales up 6.9%. This meant 45,833 more units changed hands in the last month of the quarter.
Petrol remained the best-selling fuel type, rising 2.1% to 1.15 million units, while diesel experienced a 3.1% decline to 679,739 units. This meant that internal-combustion engine cars made up 90.5% of all used transactions in the quarter.
However, their combined market share fell 2.4 percentage points compared to Q1 2024, as more buyers opted for electrified options.
Growth in EVs
HEVs attracted record numbers of transactions in the quarter, with registrations up 30.2% to 98,830 units, according to the SMMT. A total of 23,540 PHEVs changed hands, up 14% year on year. BEVs recorded the highest growth in the country, with a 58.5% rise to 65,850 sales. This gave the technology a record 3.3% share of all used-car transactions.
Smaller cars remained the largest segment in terms of demand, with superminis again the best-selling, accounting for 32.4% of all used-car transactions. They were followed by lower-medium cars with a 27% market share. Dual-purpose models were also popular, accounting for 16.8% of sales. Combined, these segments represented 76.2% of all transactions in the period.
‘The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fuelled by a recovering new car market,’ commented SMMT chief executive Mike Hawes.
‘Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch.
‘Sustaining and expanding this growth, however, depends on a healthy supply of EVs from the new car market – which in turn requires fiscal incentives alongside a nationally accessible and affordable charge point network so that everyone, whatever their budget or driving needs, can benefit from zero-emission motoring,’ he concluded.
