Five Big Shifts Changing UK Car Retail In 2025

If you run a dealership, you’ve probably felt it this year. Buyers are active, older cars are suddenly the stars, Chinese brands are everywhere, and the service department has become the profit centre.

Here’s what’s actually changed… and how to use it to your advantage.

Volumes Are Back To 2019 Levels

The industry is on track for the busiest year in six years. Used cars are selling well, and new car registrations have been growing month after month. Prices aren’t sliding anymore; they have stabilised or gently increased.

That stability matters. When buyers believe a car will retain its value, they make decisions more quickly. Dealers who present monthly payments clearly are seeing the strongest conversion from enquiry to sale.

Older Cars Are No Longer "Budget Stock"

The UK has the oldest car parc in modern history. Millions more cars are now in the 5–15 year range, and buyers are actively hunting for them because they look affordable and familiar.

If you treat older cars as second class: weak prep, vague warranties, no clarity on finance, you’ll lose deals.
Treat them as first-class stock, and they become reliable profit:

• Clean service history
• Proper prep
• Shorter HP terms
• Sensible warranty cover

Older stock + confidence = sales.

New Brands Are Rewriting The Front Row

Chinese OEMs are not a gimmick. They’ve arrived at a time when mainstream brands have pushed prices up.
They offer high spec, strong tech, and a lower monthly payment. Buyers compare monthly cost, not badge loyalty.

That means:

• More cross-shopping
• Less predictable residual values
• A heavier reliance on finance to win trust

You don’t need to “sell the brand”. You need to show what the customer pays per month and what they get for it.

EVs Are Now A Real Slice Of The Market

Electric cars are taking more than a fifth of new registrations in some months. Used EVs have picked up pace too, especially under £20,000.

The question has moved from “Should I?” to “Can I afford it each month, and what will it cost to run?”

If you can explain EV vs petrol/diesel running costs in plain English, customers lean in. If your finance choices only suit one fuel type, they lean away.

Service And Aftersales Carrying The Margin

The ageing car parc brings service, repair, warranty and MOT income straight to your door. Dealers who join up sales + aftersales + financing are seeing the best retention.

A customer who returns for maintenance becomes:

• A finance renewal customer
• A part-exchange customer
• A referral customer

Aftersales is no longer “extra”. It’s your second conversion funnel.

So, How Do You Respond?

You can’t control tax policy, new brands, or EV incentives. You can control your pricing, your website and your finance offer.

• Show monthly payments clearly… not only list price
• Be honest on APR and total cost
• Offer routes for near-prime customers, not just the perfect ones
• Treat older cars like premium stock, not trade leftovers

If buyers feel they understand the payment, they move quickly. If they feel they’re being sold to, they vanish.

Where Marsh Finance Helps

We’re a lender, not a showroom. Our job is to help your customers feel safe saying “yes”.

• Soft-search tools with zero credit footprint
• Fast HP and PCP decisions for online and showroom leads
• Near-prime finance options for real-world buyers
• Compliance-ready wording that meets Consumer Duty without killing appetite

Partner with Marsh Finance today!