Used car sales across the UK have plummeted by almost nine per cent in the immediate aftermath of the Chancellor’s Autumn Budget, according to new research.
The analysis reveals a stark contrast in daily sales figures with an average of 10,892 cars sold daily in the 11 days before the Budget, totalling 119,809 sales.
However, this dropped significantly to 9,940 cars per day in the 11 days following the Budget, with overall sales falling to 109,336.
The figures represent the first assessment of market confidence following Chancellor Rachel Reeves’s Budget announcement.
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New research has shown that sales of used cars have fallen since Rachel Reeves’s Budget
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The most dramatic impact was seen in traditional fuel vehicles, with petrol cars experiencing the steepest decline following the October 30 statement.
Daily sales of petrol vehicles dropped from 6,068 to 5,469, marking a decrease of nearly 10 per cent, while diesel vehicles also saw a significant downturn, with daily sales falling 8.4 per cent.
These figures demonstrate a clear shift in consumer behaviour following the Chancellor’s Budget speech, which some criticised for not going far enough to help Britons.
Alastair Campbell, from Marketcheck UK, offered a stark assessment of the situation, stating: “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.”
The expert highlighted how Britons are being forced to “tighten their belts” before and after the Budget, as evidenced by the falling sales.
Despite the concerning data, electric and hybrid vehicles demonstrated greater resilience to the post-Budget market downturn.
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EV sales experienced a relatively modest decline of 3.55 per cent, with daily sales dropping from 422 to 407 units, while hybrid vehicles showed a similar stability with sales dropping 4.6 per cent.
Rachel Reeves unveiled a number of changes for motorists in the Autumn Budget, including the surprise freeze on the rate of fuel duty for another 12 months.
Many had assumed that petrol and diesel prices would rise dramatically following the Budget, before the MP for Leeds West and Pudsey announced the change, helping the average driver save around £59 per year.
While Vehicle Excise Duty rates for cars, vans and motorcycles will rise in line with inflation from April 1, 2025, other changes will see first year rates increase dramatically.
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Sales of used electric cars and hybrids fell less sharply compared to petrol and diesel models
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This will see zero emission cars pay the lowest first year rate at £10 until 2029-2030, while cars emitting between one and 50g/km of CO2, including hybrids, will increase to £110 and £130 for vehicles emitting 51-75g/km.
All other rates for cars emitting 76g/km of CO2 and above will double from their current level for 2025-26, which could see some motorists pay thousands of pounds extra.
People who buy the most polluting petrol and diesel cars (over 255g/km) from April 1, 2025, are expected to fork out £5,490 when rates double next year.
