Are Used Cars Still Worth It in 2025? The Ultimate London Buyer’s Guide

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1. The Economic Landscape: Used Car Prices in 2025

Several key forces are driving used‑car prices higher:

• Limited new‑car supply: Carry‑over effects from past supply‑chain chaos mean fewer fresh models hitting showrooms. That scarcity pushes buyers towards reliable used options.
• Persistent demand: In the UK alone, around 7 million used cars change hands each year—underscoring strong appetite.
• Depreciation sweet spot: Most cars lose 15–35 % of value in their first year; after 3–5 years, the depreciation curve flattens. Experts often call this the “three‑year rule.”

From the used‑car buyer’s perspective in London, this means you’re now often buying only slightly cheaper than new: a 3‑year‑old used car might be just a few thousand pounds less than a new‑registration model.

Still, that depreciation advantage and lower insurance premiums can make it a worthwhile trade‑off.

2. Key Benefits of Buying Used in London

A. Smarter Price vs Value

Opting for a well‑maintained, used vehicle often means getting more features or a higher spec for your budget.

If you’re looking into value models, check out our page on Toyota to see which Yaris and hybrid options deliver reliability and affordability.

B. Predictable Running Costs

Used‑car owners report monthly running costs (fuel, insurance, maintenance) of between £100–£250.

These are figures you can plan for.

Also, if you’re wondering about the insurance classification of a common city car, check out our page on what insurance group is a Toyota Yaris Hybrid.

C. Insurance & Tax Saves

Older vehicles tend to be cheaper to insure.

Plus, many UK-exempt petrol or diesel cars—if they comply—can avoid daily charges and lower road taxes compared to pricier new cars.

D. Environmental Benefits

Keeping a car on the road means avoiding the carbon footprint of new‑car production—bearing some green credibility, especially for petrol/diesel models.

3. Main Risks & Checks Before Buying

A. Mechanical Health & Mileage

Older mileage often signals wear.

Surveys show up to 29 % of used‑car owners face unexpected failures.

If you ever find yourself in a sticky situation, make sure to read our guide on what to do if a dealership sells you a faulty car in the UK.

• Check full service history
• Use MOT records to look for advisories or failures
• Carry out an HPI or similar vehicle‑history check to flag clocking, outstanding finance, or accidents

B. ULEZ and Emissions Standards

ULEZ now covers virtually all inner London.

Conforming vehicles include petrol cars from 2006 onward, and diesels from 2015 onward.

Non‑compliant cars face £12.50/day charges.

C. Warranty & Finance

Unlike new cars, used vehicles may not offer warranties—and interest rates for used-car loans can be higher.

If you’re considering different ways to fund your purchase, check out our advice on how to pay for a car at a dealership.

D. Timing the Buy

Buying used isn’t seasonal in London, but some suggest March or September offers a sweet spot, coinciding with plate‑change cycles.

To better understand price flexibility, check out our breakdown of how much a dealership will come down on price.

4. Used EVs in 2025: A Londoner’s Perspective

Pros & Cons at a Glance

• Pros: Low running costs, zero tail‑pipe emissions, potential BIK relief if used for business, qualifies for ULEZ/LEZ exemptions.
• Cons: Battery degradation can affect range; public‑charging costs and upcoming EV road‑tax may diminish savings.

If electric is on your radar, check out our listings for Tesla, where you’ll find both new and used options suited for London streets.

Infrastructure & Incentives

London’s charging network is expanding at pace—ideal for buyers without home‑charging options.

However, EV grants are diminishing, and a road tax for vehicles costing over £40,000 begins April 1 2025.

5. Where to Buy Your Used Car in London

Top Platforms & Dealers

• Motorway: A London‑based online used‑car marketplace connecting private sellers with vetted dealers.
• Trusted local dealers also offer physical inspections and test drives.

Private Sales vs Dealerships

Dealers: They cost more but offer peace‑of‑mind with inspections, warranties and ULEZ verification.

Private Sellers: Often cheaper and negotiable—but higher risk.

Always meet in person, verify paperwork and MOT, and arrange independent inspection.

6. Essential Tips for London Buyers

• Budget fully: purchase price plus insurance, maintenance, fuel, ULEZ charges (if applicable).
• Check ULEZ compliance using the reg before buying.
• Vehicle history matters: get a paid HPI, MOT check, and full service report.
• Inspection time: test‑drive in varied traffic; use independent garage checks.
• Negotiate smart: leverage minor faults—like MOT advisories—as bargaining chips.
• Consider a Warranty: extended-cover deals are often cheaper than sudden big repairs.

7. Should You Buy a Used Car in 2025? Our Verdict

Yes—but with a carefully planned, London‑centric approach:

Buying Used Pros	Cons
Depreciation worked through	Higher loan interest
Lower insurance & tax costs	Mechanical uncertainty
Flexibility in choice	ULEZ restrictions apply
More accessible price points	EV battery risks

Used petrol/diesel remains cost-effective, especially if ULEZ‑compliant and well‑maintained.

Used EVs can pay off, but only with good battery health, home‑or‑cheap‑public‑charging, and long‑term use.

Buying wisely—full checks, timing, and negotiation—makes the difference.

8. FAQs for London Used‑Car Buyers

Is a used EV cheaper than petrol in 2025?
If the battery holds up and you charge efficiently, yes—it can be. But beware of public charging costs and impending road‑tax changes.

How do I check ULEZ compliance before buying?
Use your prospective car’s registration and online tools to confirm before you part with any money.

Should I buy through a dealer or privately?
Dealers offer greater security—inspections, warranties, compliance checks—just expect to pay a bit more.
Privates can be cheaper but riskier.