In 2025, the European used car market showed moderate growth and stabilisation after the ups and downs of the post-pandemic period, supported by demand for more affordable alternatives to new vehicles and a gradual increase in the number of electric cars available in the used car segment.
According to global estimates, the value of the European used car market stood at around USD 65.1 billion in 2025 (55.1 billion euros) and sustained growth is projected in the coming years with a compound annual growth rate of over 4% between 2026 and 2034.
Developments and trends in Germany
Germany, traditionally the largest European market for used cars, closed 2025 with very stable transaction figures:
- Around 6.51 million used passenger cars sold, just 0.5% more than in 2024, according to data from the German traffic authority (KBA).
- The market is at high levels, although still below the usual pre-pandemic levels (more than 7 million units).
- German brands dominate used car sales, with models such as the Volkswagen Golf, Audi A6 and BMW 3 Series among the best sellers.
Trends for 2026:
The market is expected to remain robust in terms of volume, although with a gradual transition towards more used electric vehicles.
The German market continues to adapt to a greater supply of used cars with hybrid and electric technologies, although models with conventional engines still dominate the market.
Developments and trends in the United Kingdom
The British used car market is one of the most dynamic in Europe:
- In 2025, around 7.8 million second-hand passenger cars were sold, consolidating three consecutive years of growth with a 2.2% increase compared to 2024.
- The fourth quarter (Q4) of the year maintained the positive trend, with more than 1.76 million transactions, representing slight but steady year-on-year growth.
- Although conventional engines (petrol and diesel) continue to dominate, the electrified used car segment (especially electric and hybrid) gained ground with double-digit growth in 2025.
Trends for 2026:
It is projected that in 2026, the total volume of car sales (new and used) in the United Kingdom could be around 10 million transactions, with the used car market contributing more than 8 million, supported by solid demand and increased digitisation of sales.
Developments and trends in France
In 2025, France recorded a slightly positive second-hand market, although less spectacular than in other large countries:
- Industry data indicate moderate growth, with increases in private transactions and a certain push for older cars due to the shortage of newer vehicles on offer.
- The French market is also seeing a gradual increase in used electric cars, although the majority of sales continue to be models with conventional engines.
Trends for 2026:
The market will continue to face two dynamics: on the one hand, solid demand for affordable cars and, on the other, a push towards electric and hybrid cars, which are gradually increasing their share of the used car segment.
For now, traditional engines continue to dominate in terms of volume.
Developments and trends in Spain
In Spain, 2025 was a dynamic year for the second-hand car market:
- The sector closed the year with more than 2.21 million cars sold, representing a 4.2% increase on 2024.
- For every new car sold, almost 1.9 used cars were sold, indicating a persistent preference for used vehicles in the face of high prices in the new market.
- The average age of vehicles sold is relatively high: around 11 years, with models over 15 years old dominating transactions between private individuals.
Trends in Spain for 2026:
The market continues to be supported by demand for affordable vehicles and a growing supply of second-hand electric cars.
According to sector analyses, total sales of used passenger cars are expected to continue growing in 2026, supported by greater penetration of hybrid and electric models in the used car market and by the strong presence of affordable brands, including some emerging ones (especially Chinese).
Developments and trends in Italy
The Italian used car market had a good year in 2025:
- Used car transactions reached approximately 5.65 million units, with an estimated growth of 3.3% compared to 2024, according to industry estimates.
- Only one month of the year (May) saw a decline, indicating overall stability.
Trends for 2026:
Although the new vehicle market in Italy faced some stagnation in 2025, the supply of used passenger cars remains strong.
In addition, the adoption of electric and hybrid vehicles is growing from a low level, driven by incentives and demand for sustainable mobility, which will ultimately also contribute to the used car segment.
Developments and trends in Portugal
In Portugal, although specific data on units sold in 2025 is not always published with the same granularity as in the large neighbouring markets, market reports show that the value of the used car sector increased in 2025, with the market growing in both value and overall volume.
- The used car segment in Portugal has shown growing demand, especially in affordable price segments and 3-5-year-old cars.
- The market is partly led by independent sellers and traditional platforms, with additional opportunities for growing online offerings.
Trends for 2026:
The forecast indicates that the second-hand market in Portugal will continue to grow in value and volume, with demand sustained by the shortage of new cars and consumer preference for more economical options.
Cross-cutting trends and future challenges
Electrification of the used car fleet
One of the clearest trends in 2025, which will continue in 2026, is the increase in the supply and sale of used electric vehicles (electric and hybrid), although they still represent a fraction of the total used car market in most countries.
The availability of these vehicles in the used car market will increase as new-generation fleets are renewed.
Prices and economic outlook
At the beginning of 2026, used car prices in Europe showed slight declines compared to December 2025, while wholesale prices rose marginally year-on-year, suggesting a slight normalisation after inflationary peaks in recent years.
Market factors
Prices are still influenced by the shortage of young cars, the high costs of new vehicles and the advance of digital trading platforms, which are transforming how consumers access the used car market.
Conclusion
In summary, the European used car market closed 2025 with moderate growth or stability in most major countries, with the following highlights:
- Spain and the United Kingdom as markets with clear growth in volume.
- Germany and Italy showing stability with slight growth.
- France and Portugal growing more slowly but steadily.
- Trends towards electrification, digitalisation and price adjustments set the course for 2026.
As 2026 progresses, second-hand electric cars are expected to gain market share, transactions are expected to continue to grow in volume (especially in mature markets) and the used car fleet is expected to remain a key option for affordable mobility in Europe.
Sources:
The second-hand car market meets forecasts and closes 2025 with over 2.2 million units - GANVAM
Employers' association of official dealerships - FACONAUTO
European used car market 2025: recovery, growth and structural shifts - Transconnect
How did Europe’s major used-car markets perform in 2025? - Autovista24
