Your wise guide to second-hand cars in 2025: smart buying, maintenance & selling.
Introduction from our Managing Director, Antony Diggins
Important car ownership facts according to our 2024 motorist survey
- 29% of second-hand car owners have faced sudden mechanical or electrical failures.
- 52% service their cars annually, but 2% never service them at all!
- On average, second-hand car owners spend £1-£250 monthly on running costs.
- 72% drive cars older than four years.
- Only 2% of drivers use a pure electric vehicle.
With 72% of motorists driving cars over four years old and 29% experiencing sudden mechanical or electrical failures*, reliability is a major concern. As vehicles age, the likelihood of unexpected issues increases, making regular servicing essential to keeping them roadworthy. Many owners recognise this, with 52% ensuring their cars are serviced annually*. However, even well-maintained vehicles can still require costly repairs – this is where a Warrantywise plan can offer added reassurance.
Budgeting is just as important, with most second-hand car owners spending £1–£250 per month* on essentials like fuel, insurance, and maintenance. Factoring in the cost of unexpected repairs makes financial planning even more vital. With older cars dominating the second-hand market, careful financial planning is key to maintaining reliability and performance over time.
Despite the growing push towards electric vehicles, traditional fuel types still dominate the roads—70% of drivers continue to opt for petrol cars, while only 2% drive a pure EV*. This suggests that while EV adoption is increasing, most motorists still rely on petrol models, particularly in the second-hand market. Read on for more industry insights and expert guidance—designed to help you drive confidently and enjoy peace of mind with your second-hand car ownership.
Finding the right second-hand car is all about preparation, knowing your options, and understanding the process.
Did you know?
According to our data, 70% of vehicles are petrol-powered, while only 2% are electric vehicles (EVs)*. This highlights that traditional fuel types still dominate the market, but EVs are beginning to gain traction.
What type of fuel/power does your vehicle use?
This means that if you’re a motorist planning to purchase a second-hand car, you still have plenty of options with traditional petrol and diesel vehicles as they still dominate the current market. However, the increasing popularity of electric vehicles (EVs) is an important trend to consider, especially if you’re thinking about long-term savings or reducing your environmental impact.
EVs often come with lower running costs, such as reduced fuel expenses, fewer maintenance requirements and they align with the growing shift towards sustainability. As the EV infrastructure expands and technology improves, choosing an EV could be a smart move for the future. Be sure to factor in running costs such as insurance, MOT, servicing, road tax and extended warranty. Some reports have stated that EV’s can be more expensive to insure. That also will depend on other factors such as age, gender and location [3].
What about the fact that 72 percent drive cars older than four years*?
How old is your current main vehicle?
The UK car market is experiencing a significant shift towards older vehicles, with the average age of cars on British roads reaching 9 years, a 42% increase from 6.6 years in 2003 [10]. This trend is driven by various factors, including the rising cost of new vehicles, supply chain disruptions, and economic pressures.
The ageing car market in the UK highlights a growing trend of motorists holding onto older vehicles, driven by economic pressures and rising new car prices. However, this also exposes owners to a steep depreciation curve that significantly impacts vehicle values. Cars typically lose around 15-35% [11] of their value in the first year alone, with depreciation slowing but still substantial in subsequent years.
Motorists must weigh these factors carefully, particularly as the market shifts toward electric vehicles, which are increasingly seen as more cost-efficient and sustainable options.
Steps to a successful purchase
- Understand your budget. Unsure about how much you can afford? Here’s a guide on how much of your salary you should spend on a new car.
- Determine the type of car that meets your needs—a compact for city driving, an SUV for family trips, or an EV for sustainability. When selecting a second-hand car, it’s important to consider the type of fuel or power it uses.
- Check online reviews, forums, and comparison websites to identify reliable makes and models. Our Reliability Index will also give you a data-driven insight into key repair info including average repair costs and average age of the vehicle at time of fault.
- Understand Depreciation: Cars lose the most value in their first 3-5 years, making vehicles of this age group a popular choice for second-hand buyers. If you’re planning to keep your second-hand vehicle longer, you might want to factor in how the value of your vehicle could reduce.
My top purchasing tip (Antony Diggins, Managing Director, Warrantywise):
The importance of Reliability
When buying a second hand car reliability isn’t the only factor to consider but it’s an important one. Understanding a vehicle’s reliability helps you better prepare for repair costs whilst providing peace of mind for daily driving.
Why reliability matters
Reliability is a key factor when it comes to second-hand car ownership. According to our survey data, 29% of second-hand car owners have experienced sudden mechanical or electrical failures*.
While choosing a reliable car can significantly reduce this risk, it’s important to remember that even the most reliable vehicles can face unexpected breakdowns. To protect against these situations, having an extended warranty in place can help protect against unforeseen repair bills and provide peace of mind.
How to identify reliable cars
Use the Warrantywise Reliability Index as a starting point. It scores select vehicles based on real-world data, including repair costs and failure frequency, helping you choose dependable makes and models.
Purchasing preference
Did you know? According to our survey data, 61% of buyers prefer dealerships, while 10% prefer private sellers*.
When purchasing a second-hand car, buyers look for both value and peace of mind. Recent data shows that 34% of buyers prefer franchised dealerships, while 27% choose independent dealerships—demonstrating strong confidence in both options.
Independent dealerships offer several advantages for purchasing a second-hand car, a significant one of these being more competitive pricing – without the overhead costs of larger franchised networks, independent dealerships can often offer more competitive deals. This can often mean you get a better price, without sacrificing quality.
To further protect your second-hand purchase from an independent dealership, you can also choose to add an extended warranty—a valuable safeguard against unexpected repair costs, particularly for older vehicles. This additional protection helps ensure peace of mind with regards to your purchase.
Where would you buy a used vehicle?
However, purchasing from a private seller can also be a smart choice, especially if you take the right precautions. Private sales may offer lower prices and more room for negotiation compared to dealerships. While private sales don’t typically include warranties, you can always add an extended car warranty with Warrantywise for added reassurance, protecting your investment against unexpected repairs.
Real-world scenario: finding the perfect fit
Lucy, a new parent from Bristol, needed a reliable car to accommodate her growing family. She researched SUVs known for safety and space, narrowing her options to a Nissan Qashqai and a Kia Sportage. After test driving both, she purchased a 4-year-old Kia Sportage from a dealership. The dealership provided a service history and a three-month warranty, giving Lucy peace of mind about her investment.
Additional Resource
If you’re just starting your journey, check out our guide to buying a second-hand car. It’s packed with expert advice on finding the perfect vehicle, negotiating the best price, and ensuring you make a smart purchase.
2. Financing your second-hand car
Second-hand cars offer great value, but financing can often be part of the equation. Motorists have access to a range of finance options, including Personal Contract Purchase (PCP), Hire Purchase (HP), personal car loans, and leasing. These diverse options allow motorists to choose a financing method that best suits their needs and financial situation.
Did you know?
The average second-hand car owner spends £1-£250 per month on car-related expenses, including insurance, fuel, and maintenance*.
On average, how much do you spend on car-related expenses per month?
Real-world scenario: understanding loan terms
James, a young professional, financed a second-hand BMW 3 Series through a hire purchase agreement. While the monthly payments were affordable, he didn’t realise the balloon payment at the end of the term would cost £4,000. Thankfully, the dealership allowed him to refinance the balance.
Financing options
When choosing a financing option, consider factors such as your budget, credit score, desired ownership status, and long-term plans for the vehicle. Each option has its advantages and potential drawbacks, so it’s important to carefully review the terms and calculate the total cost over the entire agreement period.
Additional Resource
Here you’ll find some resources from industry experts to help give you a bit of clarity on how different types of financing work.
MoneyHelper is backed by the UK government, ensuring impartial and up-to-date information. Includes practical tips for budgeting and understanding contract terms.
Which? Car Finance Guide
Car finance options explained [9]
Published by Which?, a trusted consumer rights organisation, these resources provide unbiased information for informed decision-making. They offer clear, jargon-free explanations of PCP, HP, leasing, and personal loans, making it easier to compare options and choose suitable financing. Regularly updated, most recently in January 2025, they reflect current regulations and market trends.
3. Maintaining your second-hand car
Proper vehicle maintenance ensures your car remains reliable, roadworthy, and avoids costly surprises. Regular upkeep not only extends the life of your vehicle but also ensures it meets safety and legal standards. Every car over three years old in the UK must pass an annual MOT test to remain legally roadworthy. The MOT checks key safety components such as brakes, tyres, lights, and emissions to ensure your car meets minimum safety standards. Driving without a valid MOT is illegal and can result in fines of up to £1,000.
While the MOT ensures your car meets basic safety requirements, regular servicing goes beyond that by addressing wear and tear. Servicing helps to identify potential problems before they become major issues, saving you from costly breakdowns or repairs.
Did you know?
29% of owners have experienced a sudden breakdown*.
Have you ever experienced sudden mechanical or electrical failure in your current car?
Real-world scenario: the cost of skipping maintenance
Ben skipped servicing his 7-year-old VW Golf to save money. Six months later, the car’s timing belt snapped, causing severe engine damage and a £1,200 repair bill. Because he had skipped his service and not ensured his schedule was maintained to the manufacturer’s standard, his extended warranty was also void. A regular service could have saved Ben hundreds.
The role of an extended warranty
An extended warranty provides peace of mind by protecting against the financial burden of unexpected repairs. It’s especially beneficial for older cars, where the likelihood of failures increases. For example:
MOT and servicing: a partnership for Reliability
Did you know? 52% of second-hand car owners service their vehicles annually, but 16% do so every six months, according to our survey data*.
How often do you get your car serviced?
A full-service history not only keeps your car running smoothly but also enhances its resale value. By prioritising servicing, you’ll ensure your second-hand car remains safe, efficient, and ready to serve you for years to come. This is more important than ever today, with rising repair costs an ever-increasing factor of consideration.
The high cost of living combined with high repair costs due to component shortages and inflation are forcing drivers to make tough choices to delay maintenance and repairs [12]. Meanwhile, 56 per cent of garages told the Motor Ombudsman they’re expecting motorists to delay vital repairs in order to avoid expensive bills this year. But there are ways that you can be more savvy with your servicing and repair costs:
My top servicing and repair cost-saving tip (Antony Diggins, Managing Director):
“With average repair request costs rising due to inflation, many motorists are turning to third-party warranties and choosing independent garages over main dealers for servicing. Our warranty holders are required to follow manufacturer service schedules, but this doesn’t mean paying main dealer prices. Independents often charge significantly less—sometimes three or four times less— offering a smart way to stay on top of your expenses without sacrificing quality.”
If you haven’t already, writing down your total motoring costs and looking at ways to help you budget, can be incredibly beneficial. Many of us drive around on autopilot – even when it comes to our finances – but mapping everything out across the next few years can help you feel more in control.
4. Driving and usage tips
Driving habits significantly impact your car’s lifespan, fuel efficiency, and resale value.
Did you know?
- 60% of drivers admit to driving while tired, according to our data*. Fatigue not only impairs reaction times but is also a major contributor to accidents.
- 39% of drivers report experiencing road rage* in the past 12 months. Aggressive driving not only increases stress levels but also impacts your vehicle’s longevity.
The impact of tired and aggressive driving
Fatigue reduces concentration and slows reaction times, making it harder to respond to sudden changes on the road. This can result in:
- Higher accident risk: According to National Highways, fatigue is a factor in 10% of all deaths and serious injuries on its roads during summer months, up from 7.5% during the rest of the year [2].
- Increased fuel consumption: Sluggish or unfocused driving often leads to inconsistent speeds, burning more fuel.
- Vehicle damage: Hitting kerbs or potholes while tired can damage suspension components and tyres.
Did you know?
78% of UK motorists would like to see the increase in road tax costs spent on potholes*.
Where should the increased road tax costs be spent?
The UK government announced in December 2024 a record £1.6 billion investments for pothole repairs and road maintenance in 2025-2026. This funding is expected to help fix the equivalent of over 7 million extra potholes [3]. Additionally, the public is being encouraged to report potholes to their local councils to address the problem more effectively.
Road rage and aggressive driving
Aggressive driving, such as speeding, rapid acceleration, and harsh braking, can increase wear and tear on critical vehicle components:
- Brakes and tyres:
- Harsh braking causes your brake pads to wear out faster and places additional strain on the braking system.
- Sudden acceleration increases tyre wear unevenly, reducing their lifespan.
- Suspension and steering:
- Swerving or frequent sharp turns damage suspension components, leading to costly repairs.
Drive smarter
Small changes in how you drive can make a big difference in extending the lifespan of key vehicle components and improving overall efficiency. Below are some practical tips for smarter driving:
- Allow your engine to warm up for a minute or two after starting, especially in colder weather.
- Accelerate and brake gently.
- Avoid aggressive driving to reduce wear and tear on key components.
- Take Regular Breaks – fatigue is a leading cause of accidents. Plan stops every two hours during long journeys.
5. Selling your second-hand car
Timing is everything when it comes to selling your car. Choosing the right moment to list your vehicle and adopting the right strategies can make a significant difference in securing the best price.
Did you know?
According to our survey data, 27% of people plan to keep their car for more than 3 years*. While many owners hold onto their vehicles for the long term, selling your car sooner doesn’t mean you can’t maximise its value.
How long do you plan on keeping your current vehicle?
With careful planning—such as maintaining a full-service history, fixing minor cosmetic issues, and understanding market trends—you can significantly boost your car’s resale price, even if you’ve only owned it for a short time.
Think of your car as an investment. Just like stocks, there’s an optimal time to ‘sell’ for maximum returns. Factors like seasonal demand, current market conditions, and rising interest in certain car types, such as electric vehicles, can all influence how much you’ll get for your car.
Real-world scenario: timing the market
Anna decided to sell her Toyota Yaris after seeing a rise in demand for small, fuel-efficient cars. By listing it in early spring, she sold it within a week for £500 more than her asking price.
Market Insights for 2025
- In Q1 2024, 1,967,923 used cars were sold in the UK, marking the best start to a year since 2019 [5].
- The average price of a used car in November 2024 was £16,492 [4].
- Used cars are selling two days faster than in 2023, taking an average of 31 days to leave forecourts [5].
- Electric vehicles (EVs) are gaining popularity in the used market, with sales nearly doubling to 118,973 in 2023, a 90.9% year-on-year increase [4].
These trends suggest that second-hand buyers should be prepared to make decisions quickly in a competitive market, especially for popular models or EVs. It would also be wise to consider the long-term value and running costs of different fuel types, given the shifting market dynamics towards electric vehicles.
Pre-sale preparation
Fix minor issues, clean the car professionally, and gather paperwork like the service history and MOT certificates.
Fix minor issues
Addressing small problems can significantly impact your car’s appeal and value:
- Replace burnt-out bulbs, top up fluids, and touch up scratches.
- 68% of buyers are more likely to purchase a used car that has had minor repairs completed [4].
Detail the car
A clean, polished car can significantly enhance its appeal:
- Professional detailing can increase a car’s value by up to 5%.
- 71% of buyers consider the cleanliness of a used car as very important in their purchasing decision [6].
Gather paperwork
Include the service history, MOT certificates, and any warranty documents:
- Cars with a full service history can be worth up to 23% more than those without [7].
- 91% of used car buyers consider service history important when making a purchase [6].
Navigate second-hand car ownership with confidence
At Warrantywise, we understand that owning a second-hand car isn’t just about transportation, it’s about making smart decisions to get the most value from your vehicle. Whether you’re deciding which car to choose, planning your maintenance schedule, or preparing to sell, every step of the journey is an opportunity to save money, reduce stress, and maximise your car’s potential.
Through this guide, we’ve provided actionable insights and advice, backed by our survey data, to help you navigate second-hand car ownership with confidence. From understanding financing options to the importance of servicing and timing your sale, these strategies are designed to empower you as a car owner.
Protect your investment with an extended warranty
Unexpected repairs can happen, even to the most reliable cars that’s why having an extended warranty can offer added reassurance to drivers. With Warrantywise, you can access warranty plans designed to include the cost of eligible repairs in line with your specific terms and conditions, giving you peace of mind and financial protection.
References
*The survey data cited in this guide was compiled from research conducted by OnePoll in 2024. The survey was based on responses from a representative sample of 2,000 UK: Car owners.