Q1 sales and aftersales trends across UK car retailers

With the first quarter seeing a welcome increase in new car registrations and a stable used car market, CitNOW Group data has also identified improvements in sales enquiries and workshop efficiencies

New car registrations rise in Q1

Demand for new cars enjoyed a welcome boost in March with the Society of Motor Manufacturers and Traders (SMMT) reporting a 12.4% rise in registrations to 357,103 units.

Overall, it was the best performance for the all-important March plate-change since 2019 and the first month of growth of 2025.

Significantly it also marked a welcome return to growth for the retail sector following last year’s lacklustre performance with sales up 14.5%, although consumer confidence remains fragile.

The fleet sector continued to drive the market, taking a 56.6% market share, compared to retail at 41.2%.

The SMMT said it was the best month ever for new EVs with sales up 43.2% year-on-year to 69,313 units, achieving a 19.4% market share.

However, these sales were mostly driven by manufacturer incentives, with Auto Trader reporting average EV discounts of 11.5%. Additionally, canny retail and fleet buyers purchased EVs over £40,000 to get ahead of the new VED Expensive Car Supplement which came into effect on 1 April. 2

March’s uptick gave a much needed boost to Q1 with overall registrations up 6.4% year-on-year from 545,548 to 580,502. Despite the increase, EVs only accounted for 20.7% of total sales, ahead of last year but still a long away adrift of 2025’s ZEV Mandate target of 28%.

Used car demand “solid” in Q1

MOTORS, the online marketplace, reported a stable used car market in March with its monthly Market View reporting only slight fluctuations in prices and dealer stock levels.3

However, it described retail demand as “solid” resulting in the fastest sales of Q1 with cars averaging 30 days on dealer forecourts.

Enquiries to orders uplift

Our Dealerweb Showroom data also shows some encouraging Q1 trends around new and used vehicle sales activity:

• 29% new car enquiries to orders
• 33% used car enquiries to orders
• 4% increase year-on-year enquiries to orders
• 3% increase year-on-year in new car order value
• 5% increase year-on-year in used car order values
• Total enquiries – 56% used, 44% new

Although enquiries were down year-on-year by an average of 17% for used cars and 11% for new cars, conversions improved by 4% and 5% respectively.

While consumer confidence was low, against a backdrop of high living costs, retailers were proactive, combating a challenging market by investing in back-to-basics sales training, running tighter operations and using technology to support growth.

Collectively these moves resulted in retailers digging deep and successfully converting more of their enquiries.

This solid performance was reflected in our CitNOW Sales and Workshop video numbers, with a high of nearly 4m videos being made during the Q1 period reflecting an 8% year on year increase.

Aftersales increases across red/amber work, conversions and eVHCs

A similarly encouraging picture emerged across aftersales performance from our analysis of CitNOW Insights data comparing Q1 2025 to Q1 2024.

• 6% increase in in average red sold value
• From £134.91 (2024) to £142.35 (2025)

This suggests dealers are either selling more red work or the price of parts has increased. The rise can also be linked to an increase in conversion rates.

• 5% improvement in red conversion — from 45.8% (2024) to 47.9% (2025)
• 9% improvement in amber conversion — from 8.6% (2024) to 9.3% (2025)

We believe this shows how dealers are getting better and more focused on converting repair work; the amber increase is particularly impressive.

The increase in conversions was also achieved despite fewer vehicles having red or amber work, with our data identifying a year-on-year drop from 69.6% to 68.1%. Further evidence of dealers doing more with less by using software tools to drive more conversions.

Dealers also achieved an increase in the volume of eVHCs videos they sent to customers — up from 43.7% in Q1 2024 to 59% in Q1 2025, a 35% uplift. This rise would also have contributed to improved conversions for the quarter.

We also noted how dealers are still taking an average of 16.5 minutes to complete an eVHC, showing how producing more videos is not having a negative impact on the time it takes to complete them.

And finally we identified an increase in customers opting to check in digitally, up from 42% of all services in Q1 2024 to 46% in Q1 2025, an 8% uplift.

New check-in services such as CitNOW Conversations will be driving this change, making it easier for customers to plan their aftersales requirements.

To find out how CitNOW Group can help grow your business, contact us today.