Business 12 www.aftermarketonline.net JUNE 2025 Used car sales boost good news for workshops The used car market has bounced back, with sales surpassing two million in the first quarter of this year — which is good news for the aftermarket. This change is in contrast to the new car sector, which has struggled for much of the year so far, according to Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA). Commenting on the latest SMMT used car figures, the NFDA said the used car market experienced growth of 2.7% in Q1 2025, marking the ninth consecutive quarter of year-on-year expansion. A total of 2,020,990 transactions occurred in the quarter, the first-time sales have breached two million in the first quarter since before the pandemic. Used battery electric vehicles (BEVs) recorded the highest growth, increasing by 58.5% to 65,580 units and achieving a record market share to date of 3.3%. Sales of plug-in hybrids and hybrids also saw significant growth, rising by 14.0% and 30.2% respectively. Petrol remained the best-selling fuel type, rising 2.1% to 1,149,855 units, while diesel vehicles, at 679,739 units, saw a decline of -3.1%. Combined, petrol and diesel vehicles saw their combined market share fall 2.4% on Q1 2024. Robinson said: “The surge in demand for used battery electric models demonstrates growing consumer confidence in zero-emission mobility, highlighting the importance of continued investment in charging infrastructure and supportive policies to maintain this momentum. “This resilience in the used car market persists even in the face of ongoing political and economic turbulence and there are positive signs that the used car market will continue its strong momentum throughout 2025.” Meanwhile, the National Association of Motor Auctions (NAMA) has said its used vehicle grading scheme offers an opportunity to maximise asset performance and this too can boost the coffers of bodyshops. NAMA spokesperson Paul Hill said the scheme gives sellers the ability to unlock additional value and achieve significantly better outcomes at auction, through small, cost-effective improvements to vehicle condition. NAMA is urging sellers to maximise the residual value of their vehicles by taking full advantage of the NAMA used grading system, offering what can effectively be seen as “maximising asset performance”. By simply investing in cosmetic refurbishment to move a vehicle’s grade from a 4 to a 2, sellers can achieve a significant, measurable return on investment, Hill said. Using an example of a vehicle sold at auction for £10,000, data shows that a Grade 4 car typically achieves 86% of Guide Price, while a Grade 2 vehicle reaches 97% — a difference of £1,100 in sale price performance. In this example, upgrading the vehicle grade could be achieved by repairing two panels, refurbishing a bumper corner, and carrying out paintless dent removal — at an average cost of just £550. Using this example, a £1,100 increase in vehicle value for a £550 investment will mean a 100% return, effectively boosting the vehicle’s market value while providing a strong, measurable outcome for the seller. Beyond the immediate financial uplift, sellers benefit from faster firsttime conversion rates, reduced days in stock, and greater buyer engagement, all of which enhance a seller’s brand reputation and cut stocking costs. NAMA members have the expertise and tools to guide sellers through the process, helping operators maximise asset performance opportunity and maximise the potential of every vehicle. Hill said: “The NAMA scheme offers sellers a straightforward way to improve performance at auction through smart, cost-effective enhancements. By making targeted improvements, operators can increase a vehicle’s value and improve buyer engagement, ultimately supporting quicker sales and a stronger reputation in the market.” Visit https://www.nama-uk.com/ grading/grading for details of the scheme. Investments in cosmetic refurbishment can increase a vehicle’s grade at auction. Photos: NAMA Positive signs used car market will continue its strong momentum
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