The Truth Behind the Chaotic Market
If you’re planning to buy a car in 2025, whether new or used, you’re stepping into one of the most complex and confusing car markets we’ve ever seen. With skyrocketing prices, a flood of new brands, and an increasingly aggressive push toward electric vehicles (EVs), the choices are overwhelming. But what’s causing this chaos, and how can you navigate it? Let’s break it down based on the latest data from Auto Trader.
The Price Problem
New car prices are at an all-time high, jumping an astonishing 39% in just five years. Back in 2019, the average new car price was £31,000. Now? A whopping £43,000. It’s no surprise that fewer people are buying new cars. In fact, private new car sales are expected to drop by 27% compared to 2019, marking the lowest levels in two decades.
Why are prices so high? Inflation, the cost of advanced technology in EVs, and supply chain disruptions are to blame. For many buyers, the affordability of a new car is slipping further out of reach.
The EV Conundrum
The UK government has set aggressive targets for Zero Emission Vehicles (ZEVs). In 2024, the ZEV mandate required 22% of new car sales to be electric, but manufacturers only reached 18%. In 2025, that target rises to 28%, and the pressure is mounting. Manufacturers face hefty fines if they don’t meet these targets.
However, consumer interest in EVs is cooling. While electric cars are gaining ground, there’s still hesitation over charging infrastructure, range anxiety, and high upfront costs. Meanwhile, petrol cars, though still dominant, are starting to decline in availability. The transition is happening – but at a pace that leaves both buyers and brands struggling to adjust.
New Brands, New Confusion
The market isn’t just about rising prices and EV targets. It’s also bursting at the seams with competition. Since 2019, 17 new brands and 81 new models have entered the market, most of them offering electric vehicles. While more choice sounds great in theory, it’s leaving buyers scratching their heads. Which brands are reliable? Which models are worth the investment? The abundance of options can feel more like a burden than a blessing.
The Used Car Market: Strong but Shrinking
If new cars are too pricey, what about used ones? The good news is that demand for used cars remains strong. The market is expected to grow slightly, from 7.61 million sales in 2024 to 7.70 million in 2025. However, there’s a catch: the supply of 3-5-year-old cars is at its lowest level on record. Pandemic production shortfalls mean fewer nearly-new cars are entering the market, which could drive up prices and competition for stock.
So, Should You Buy a Car in 2025?
Here’s the bottom line: the 2025 car market is not for the faint-hearted. Buying a car, whether new or used, will require more research, planning, and patience than ever before. Brands are desperate for your money, and you’ll be bombarded with flashy marketing, big discounts, and an overwhelming array of choices. But don’t rush.
Tips for Navigating the 2025 Market
- Know Your Needs: Are you looking for an EV or sticking with petrol? Do you need a family car or a sporty hatchback? Decide your priorities before stepping into a dealership.
- Do Your Research: Compare brands, models, specs, and prices online. Check trusted resources like BROWNCARGUY (!) for real-world reviews.
- Consider Nearly-New: If you can’t stretch your budget to a new car, look for nearly-new models (if you can find them). They often offer the best value having suffered big initial depreciation.
- Be Wary of New Brands: While some new players may offer great deals, reliability and long-term support could be a gamble. Weigh up the affordability and keen offers of new players against brands that have a proven track record.
- Take Your Time: Don’t let sales tactics rush your decision. The right car will be the one that fits your budget and lifestyle.
Final Thoughts
The 2025 car market is a battlefield, and buyers are caught in the crossfire of rising costs, regulatory pressures, and overwhelming choice. But with the right approach, you can navigate the chaos and make a decision you won’t regret. I’m here to help – stay tuned for my car reviews and the latest news and updates from the new, used and classic car markets.
What about you? Are you planning to buy a car in 2025, or are you waiting for the dust to settle? Let us know in the comments!
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