Used car market reeling after Autumn Budget, sales drop by 8.74%

The used car market has experienced a notable decline in sales in the wake of the Autumn Budget, according to data released today by Marketcheck.

The data reveals an 8.74% drop in sales in the 11 days following Chancellor Rachel Reeves’ announcement, highlighting concerns over market confidence under the new Labour Government.

Marketcheck compared sales figures from the 11 days preceding the budget (October 19 to October 29) with those from the 11 days after (October 31 to November 10). The average daily sales fell from 10,892 to 9,940, with total transactions dropping from 119,809 to 109,336.

The decline was most pronounced in sales of petrol and diesel vehicles. Petrol car sales saw a 9.87% drop, with average daily transactions falling from 6,068 to 5,469. Diesel cars followed closely with an 8.38% decrease, dropping from 3,581 to 3,281 daily.

Electric vehicles (EVs) and hybrids appeared less affected, with sales showing smaller declines. EV sales dropped by 3.55%, from a daily average of 422 pre-budget to 407 post-budget. Hybrid vehicles saw a 4.63% decrease, with daily sales falling from 821 to 783.

Alastair Campbell of Marketcheck UK expressed concern over the sharp decline, linking it directly to economic uncertainties stemming from the budget: “Without doubt, market confidence has been hit following Labour’s Budget. These are significant falls, which directly correlate to the wider economic announcements made by Rachel Reeves.”

“The used car market is a reliable gauge of economic confidence, so to see such a stark drop immediately following the Budget is a concerning sign for the British economy. Individuals and families are tightening their belts, and evidently that has been reflected in these falling sales.”