👉 Car delivery times
👉 New car registrations & the most registered models
👉 Cars surging in value
👉 Cars depreciating the most
👉 The most expensive places to buy a car
👉 The car finance industry
👉 A look at EVs
👉 Conclusion
As we approach the end of 2024, it’s time to look back at the car market. It has been a year of hardships, with continued pain felt from rising energy prices and diminishing household finances. Nevertheless, the car market has shown resilience and is now in a good position moving into 2025. We’ve taken a look at the following areas to best understand the 2024 UK car market:
New car registrations have unfortunately remained a major issue in 2024. This has carried over from previous years, brought on by a semiconductor shortage that halted car production. Ever since this point the industry has been playing catch up and, by the end of 2024, still isn’t any closer to a solution. On average, drivers are now waiting six months for their new car, but for some models this is even higher. The Land Rover Discovery Sport has a current wait time of nine months, a massive put off for customers who may look for cheaper alternatives with a quicker delivery time. With no visible end in sight to semi-conductor shortages, could this waiting time grow even further next year?
New car registrations are up 3.3% versus last year, increasing from 1,600,000 to 1,660,000. Some of the most popular cars registered in 2024 were:
(Source: SMMT)
What stands out in this list is the number of SUVs, as customers continue to switch to bigger vehicles. This change in demand has been matched by car manufacturers, who have discontinued some long-standing models, favouring SUV versions (Ford with the world famous Ford Fiesta).
Plenty of cars saw their value increase during 2024, and some in this list might surprise you.
(Source: Motors)
On the flip side, plenty of vehicles lost value during 2024. Here are the top five depreciating cars in 2024:
(Source: Motors)
Postcodes have a huge impact on car prices. A study by Motor.com found the most expensive places to buy a car are:
(Source: Motor.com)
Despite facing a barrage of challenges in 2024, the UK car finance industry has shown remarkable resilience. From the lingering effects of the pandemic and semiconductor shortages to the impact of the new government and the DCA commission findings, the sector has navigated turbulent waters with aplomb.
A silver lining emerged in the form of consumer new car finance volumes, which grew by 4% year-on-year. The actual value of these new finance deals surged by 8%, demonstrating a strong appetite for car ownership.
As we look ahead to 2025, the industry is poised for further growth. With anticipated clarifications on the DCA regulations, the stage is set for a dynamic and prosperous future. The car finance industry is not just surviving; it's thriving.
Although there are whispers of an EV drop off, sales figures are again higher than the year prior, indicating that these vehicles are here to stay. 338,000 fully electric vehicles were sold in 2024, accounting for 18% of the market share. Compared to 2023, this is 18% higher, when sales hit 315,000. This Zapmap report was published in early November, and so the final number in 2024 may be even higher. Already though, it has surpassed last year’s tally. Across the year, monthly registrations have slightly fluctuated but maintained an upward trend. The success of EVs might come as a surprise to some, with rumours of falling demand within drivers.
In terms of 2025, it’s somewhat up in the air as to how EVs will perform. Yes, the trend has been upward most years and the growth from 2020 is remarkable, but the upcoming changes to car tax in 2025 seeing EVs charged the same as petrol and diesels could have a monumental impact on sales. In previous years the Government subsidy and reduced tax rates acted as massive incentives to purchase an EV, but with these reducing in 2025, could we see dwindling figures across 2025?
2024 has been a year of mixed fortunes for the car market. While challenges like extended delivery times and the ongoing impact of the DCA commission case have persisted, there have also been positive developments, particularly in the electric vehicle (EV) and car finance sectors.
As we transition into 2025, several key areas will shape the industry's trajectory. Addressing persistent delivery delays, responding effectively to the implications of the DCA case, and adapting to evolving government policies on EVs will be crucial for industry stakeholders.
With over half a century of experience, we've witnessed the automotive industry evolve and overcome countless challenges. Throughout this journey, we've consistently maintained our position as a leading car finance provider.
If you’re looking for a partner who can help you navigate through 2025, contact us today. Click here to discover how our tailored solutions can empower your success.