Are Used Car Prices Going Up or Down in 2027?
Will used car prices fall in 2027? We look at the latest UK data on older cars, EVs and petrol models, and what it means if you're buying on finance.
Will used car prices rise or fall in 2027? We look at the latest UK data on older cars, used EVs and petrol and diesel models, and what it means if you're buying.
Buy now, or wait and hope prices drop? It's one of the questions we hear most.
Used car prices shot up after the pandemic, when factory shutdowns and chip shortages meant far fewer new cars were built. Fewer new cars then means fewer used cars now, and that knock-on effect hasn't fully gone away.
But the market is changing. Supply is recovering, and the mix of cars on forecourts looks very different to a few years ago. So rather than every used car getting cheaper or pricier at once, 2027 is likely to depend on a car's age, fuel type, condition and how many people want one.
Nobody can promise where prices will go. Inflation, interest rates and household budgets can all move things in ways forecasters don't expect. What we can do is show you what the latest UK data says, and what it could mean for you.
In this guide
- Where used car prices are right now
- Will used car prices fall in 2027?
- Why older cars could stay expensive
- Will used electric cars get cheaper?
- Could petrol and diesel cars cost more?
- Will there be more used cars for sale?
- Which used cars could hold their value
- Should you buy now or wait?
- How to get a better deal
- How to finance a used car
Quick answer: Used car prices aren't expected to rise or fall across the board in 2027. The overall UK market looks fairly stable, but affordable older cars could stay expensive because there aren't enough of them. Meanwhile, more younger cars and EVs coming through could mean better value elsewhere. In short, 2027 looks like a two-speed market, and where you shop will matter more than when.
Where used car prices are right now
Before looking ahead, it helps to know where things stand. And right now, the used car market is steady rather than dramatic.
Auto Trader reported an average used car asking price of £17,131 in August 2026. On a like-for-like basis, that was almost flat, down just 0.1% on the year before.
People are still buying, too. SMMT recorded 2,009,318 used car sales in Q2 2026, 0.7% more than the same quarter in 2025.
No crash, no spike. That's the starting point for 2027.
Will used car prices fall in 2027?
Some will. Some won't.
There are forces pulling prices in both directions, and which one wins depends on the type of car you're after.
Why some prices could come down
More cars coming through. More new cars have been sold in recent years, and they eventually reach the used market as part-exchanges, ex-fleet cars, lease returns and nearly-new stock. Cox Automotive reported in 2026 that all of these were building in volume, and warned that extra supply could put pressure on values if demand doesn't keep up.
More choice for you. When dealers have several similar cars competing for the same buyer, you're in a better position to shop around and negotiate.
The wider economy. Interest rates, inflation and household budgets all shape what people are willing to pay. Cheaper borrowing makes cars easier to finance, but it can also push demand up, which works the other way on prices.
Why some prices could stay high
During the pandemic, factory shutdowns and chip shortages meant millions of cars that would normally have been sold here were never built. Cox Automotive estimates more than three million new car registrations were effectively lost.
Here's why that matters now. Cars first registered around 2020 to 2022 would normally make up a big slice of the five-to-seven-year-old market by 2027. They were never made, so they can't be sold on.
Missing new cars become missing used cars. Simple as that.
Why older cars could stay expensive
If you're shopping at the more affordable end of the market, this is the bit to read.
Auto Trader has forecast that 15.4 million cars on Britain's roads could be at least 10 years old by 2027. That's around 40% of all cars in the UK.
You'd expect all those older cars to be cheap. The latest data says otherwise. In July 2026, Auto Trader found that 10-to-15-year-old cars had the strongest like-for-like price growth of any age group, up 7% year-on-year.
The reason is fairly straightforward. Lots of buyers on tighter budgets are chasing the same limited pool of decent older cars, and the cars that weren't built during the pandemic aren't going to suddenly turn up. A reliable, well-looked-after older car can hold its price surprisingly well.
In 2027, the cheapest corner of the used car market could be one of the most interesting to watch. Budget doesn't always mean bargain.
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Will used electric cars get cheaper?
You may have read that used EV prices are collapsing. The latest figures tell a more balanced story.
SMMT says used electric car sales rose 67% year-on-year in Q2 2026, reaching a record 5.5% of all used car sales. Petrol and diesel still made up almost nine in every ten.
Prices have been rising, not falling. Auto Trader's August 2026 data showed used EV prices 3.8% higher than a year earlier, with three-to-five-year-old EVs up 9.4% to an average of £20,351.
More used EVs are definitely on the way, through lease returns, company fleets, salary sacrifice schemes and part-exchanges. But demand is growing too. In September 2026, three-to-five-year-old EVs took an average of 25 days to sell on Auto Trader, compared with 29 days across the wider used market.
So the real question for 2027 is whether supply grows faster than the number of people who want one. If it does, buyers could find better value. If it doesn't, prices may hold firm.
Could petrol and diesel cars cost more?
Possibly, especially the more desirable ones.
Manufacturers are selling a growing share of EVs and hybrids, which means fewer young petrol and, in particular, diesel cars will filter through to the used market. Cox Automotive has previously argued this could mean more competition for good petrol and diesel stock.
If you specifically want petrol or diesel, you may have less to choose from. And low-mileage, well-kept examples could buck the wider trend.
Government policy plays a part here. Under the current Zero Emission Vehicle (ZEV) mandate, the share of new cars manufacturers must sell as zero-emission rises from 33% in 2026 to 38% in 2027. The government launched a further review of the mandate in August 2026, though, so these targets could still change.
Will there be more used cars for sale?
Yes, and the market has recovered faster than many expected.
Earlier Cox Automotive forecasts pointed to a gradual climb from around 7.4 million used car sales in 2024 to nearly 7.9 million by 2027. But SMMT data shows the market had already reached around 7.81 million sales in 2025, up from 7.64 million in 2024.
For buyers, that's a good sign. There's plenty of choice out there, even if some types of car are still in short supply.
What could push prices up or down
Could push prices up:
- A shortage of desirable five-to-seven-year-old cars
- Strong demand for affordable older cars
- Fewer younger petrol and diesel models coming through
- New car prices staying high
- Strong buyer demand overall
Could push prices down:
- More ex-fleet and ex-lease cars reaching the market
- More recent new car sales turning into used stock
- More competition between dealers
- A bigger supply of nearly-new EVs
- Weaker consumer confidence or tighter household budgets
- Higher borrowing costs
Which used cars could hold their value
We're not going to give you a top 10 we can't back up. Instead, here are the types of car most likely to hold firm.
Affordable small cars
Clean, dependable budget cars are in short supply, so good examples could keep their value well.
Most likely to hold value if: it's got a full service history and a clean MOT record.
Popular hatchbacks and family SUVs
Auto Trader's September 2026 data shows hatchbacks and compact SUVs dominating its list of fastest-selling used cars. Cars that sell quickly tend to hold their prices.
Most likely to hold value if: it's a well-known model with plenty of buyers, like the Ford Puma or Nissan Qashqai.
Good-quality petrol cars
With fewer young petrol cars reaching the used market, well-kept examples could stay in demand.
Most likely to hold value if: it's low-mileage and economical to run.
Used EVs
More supply could create some good buying opportunities. But recent figures show demand and prices strengthening rather than falling.
Most likely to hold value if: it's three to five years old, currently the fastest-selling EV age group.
Looking for specific models? Our guide to [4 Cars That PROVE You Don't Need a New Car] picks out four five-year-old cars that still feel modern, and [5 Reliable Cars That Won't Break the Bank] covers dependable options on a budget.
Should you buy now or wait?
Here's our honest take: there's no guarantee that waiting until 2027 will make the car you want any cheaper.
We'd always encourage you to look past the headline price and at what the car will actually cost you. Saving a few hundred pounds on the advertised price isn't much of a saving if your finance costs, insurance or the value of your current car move the wrong way while you wait.
And if you need a car now, for work, family or just getting about, waiting for prices that may never drop could cost you more than it saves.
When you're weighing it up, think about:
- whether the car fits your budget right now
- the finance APR and the total amount payable
- insurance, road tax and fuel or charging costs
- servicing and maintenance
- how quickly it's likely to lose value
- its condition and history
How to get a better deal
Whatever the market does, the individual car in front of you matters most. Before you commit:
- Compare several of the same model. Prices for near-identical cars can vary more than you'd think
- Service history. A full, stamped record matters more than low mileage
- MOT record. Free to check online, and advisories tell you what's coming
- A vehicle history check. Reveals outstanding finance, write-offs or a stolen marker
- Insurance quote before you commit. Premiums vary sharply between models and trims
- Market values. Know what a fair price looks like before you negotiate
- Fuel type. If your driving suits it, petrol, hybrid and electric could all be worth a look
- Age in context. Don't assume older automatically means better value
How to finance a used car
If you'd rather not wait, spreading the cost can make it easier to budget. Hire Purchase (HP) and Personal Contract Purchase (PCP) both let you pay in fixed monthly instalments rather than a lump sum.
carloans 365 works with a panel of lenders to help find an option that suits your circumstances, including applicants with a less than perfect credit history. Our eligibility check is a soft search, takes about 60 seconds and has no impact on your credit score.
Whatever you decide, look at the total amount payable rather than just the monthly figure, and factor in insurance, fuel, servicing and MOT alongside the finance.
If you're searching for used car prices in 2027, whether used car prices will drop, the best time to buy a used car or a UK used car price forecast, this guide should give you a clear starting point.
The bottom line
Don't expect one simple answer. The UK used car market looks fairly stable overall, but underneath that headline, different parts of it are heading in different directions.
- Older, affordable cars. Prices could stay firm or rise, as supply is limited
- Mainstream used cars. Prices could stay fairly stable
- Nearly-new cars. More supply could put pressure on prices
- Used EVs. Supply and demand are both growing fast
- Desirable petrol and diesel cars. Shrinking future supply could support values
These are market pressures, not firm forecasts. The best move is to find the right car at the right overall cost for you, rather than trying to time the market.
