How Brexit Has Impacted the UK Car Market – What It Means for Car Sellers

Brexit was one of the most significant political and economic events in modern UK history. Since the UK officially left the European Union (EU) on January 31, 2020, the car market has experienced significant shifts — from new tariffs and regulations to supply chain disruptions and fluctuating demand. For car sellers, these changes have had a direct impact on resale values, market competitiveness, and the overall process of selling a car.

In this blog, we’ll explore how Brexit has influenced the UK car market, the factors affecting car resale values, and what it means for you as a car seller in 2025.

1. The Immediate Aftermath of Brexit on the UK Car Market

When Brexit was first confirmed, uncertainty in the financial markets rippled through the automotive industry. The car industry in the UK is heavily dependent on imports and exports — many vehicles are manufactured in Europe or use European components. The immediate consequences included:

• New Tariffs on Cars and Components – The UK left the single market and customs union, resulting in a 10% tariff on car imports from the EU unless covered under the UK-EU Trade and Cooperation Agreement (TCA).
• Delays at Ports and Borders – Additional customs checks and paperwork caused supply chain disruptions, leading to delays in the delivery of new cars and replacement parts.
• Increased Costs – The cost of importing and manufacturing vehicles increased due to tariffs and longer lead times. These increased costs were passed on to consumers and affected the resale value of cars.

2. Supply Chain Disruptions and Their Effect on Car Prices

One of the most immediate effects of Brexit was the disruption to the automotive supply chain. The UK automotive industry relies heavily on a "just-in-time" manufacturing model, where parts are sourced from various European countries and assembled in UK plants. Brexit introduced new challenges:

👉 Delays and Shortages – Car manufacturers faced parts shortages, increasing production costs and limiting the availability of new cars.
👉 Increased Production Costs – Manufacturers had to factor in tariffs, new regulatory requirements, and increased transportation costs.
👉 Reduced Availability of New Cars – The lack of supply pushed up the value of used cars, creating a seller’s market.

In fact, according to cap hpi – a leading provider of automotive data – the average price of used cars in the UK rose by 30% between 2020 and 2022 due to supply issues.

3. How Brexit Affected Car Resale Values

The value of used cars in the UK has been on a rollercoaster ride since Brexit. Here's how:

✅ Increased Demand for Used Cars – With supply chain issues reducing the number of new cars available, more buyers turned to the used car market, driving up resale values.
✅ Tariffs and Regulatory Costs – Increased costs associated with importing cars have made second-hand vehicles more appealing to budget-conscious buyers.
✅ Changes in Market Preferences – Rising fuel costs and environmental concerns have also shifted buyer interest toward electric and hybrid cars, influencing the value of traditional petrol and diesel cars.

Example:

• A petrol-powered car that might have sold for £10,000 pre-Brexit could now fetch £12,000–£13,000 due to increased demand and reduced availability of new cars.
• On the other hand, diesel cars have seen a drop in value due to tighter emissions regulations and a decline in consumer interest.

4. Changes in Export and Import of Cars

Before Brexit, selling cars to buyers in the EU was relatively straightforward. Now, it’s more complicated:

🚗 Tariffs on Exported Cars – Selling a car to an EU buyer now comes with a 10% export tariff unless the car meets "rules of origin" requirements (i.e., it must be manufactured with a certain percentage of UK or EU parts).
🚗 Increased Paperwork – New documentation requirements have increased the complexity and time needed to export a car.
🚗 VAT and Tax Implications – Depending on the destination country, VAT and other taxes may apply, reducing the net value for the seller.

5. Shift Toward Electric Vehicles Post-Brexit

Brexit has also accelerated the UK’s transition toward electric vehicles (EVs):

🔋 Government Incentives – To reduce emissions and meet environmental targets, the UK government has introduced incentives for electric and hybrid vehicles.
🔋 Declining Diesel and Petrol Sales – Diesel and petrol cars are losing their market share due to rising environmental concerns and stricter emissions regulations.
🔋 EV Demand Impacting Used Car Prices – The growing demand for electric vehicles has increased the value of second-hand electric cars, while older petrol and diesel models have seen slower depreciation.

According to cap hpi, the value of used EVs increased by over 20% in 2022 alone, highlighting a growing preference for cleaner vehicles.

6. Practical Tips for Selling Your Car Post-Brexit

If you’re looking to sell your car in the UK post-Brexit, here’s how to maximise your resale value:

✔️ Monitor Market Trends – Keep track of market conditions and seasonal shifts that may impact car values.
✔️ Sell at the Right Time – Used car values tend to rise during shortages of new cars, so timing your sale can increase your return.
✔️ Focus on Condition and Documentation – A well-maintained car with a full-service history will command a higher price.
✔️ Consider Local Demand – Some regions may have higher demand for certain types of vehicles (e.g., SUVs in rural areas).
✔️ Get a Professional Valuation – At Premium Car Buying Service (PCBS), we provide expert, real-world valuations based on market demand and your car’s unique features.

7. How PCBS Can Help You Sell Your Car Post-Brexit

At Premium Car Buying Service, we understand the challenges car sellers face in the post-Brexit market. Unlike automated valuation tools, our experts assess your car based on real-time market trends and buyer demand.

Why Choose PCBS?
✅ Fair Valuation – No machine-generated quotes — real experts determine your car's worth.
✅ Instant Payment – Get paid the same day you sell.
✅ Hassle-Free Process – We handle all paperwork and legalities for you.
✅ Free Home Collection – We’ll collect your car at no extra cost.

➡️ Thinking of selling your car? Start by getting a free, no-obligation valuation on our website: Premium Car Buying Service

Final Thoughts

Brexit has undoubtedly changed the landscape of the UK car market — from tariffs and supply chain issues to changing buyer preferences and increasing demand for electric vehicles. However, with the right strategy and a trusted partner like PCBS, you can navigate these changes confidently and secure the best possible price for your car.

Ready to sell? Get started today!