New driver surge leads to boom in demand for cheap used cars

Demand for used cars priced at less than £5,000 is rocketing, as a record number of new drivers seek to buy their first car.

A total of 953,010 practical driving tests were passed in 2025, the highest number since records began back in 2008.

And these eager new drivers are creating a sharp rise in demand for affordable used cars.

Data from used car marketplace Gumtree shows that cars priced under £5,000 reflect the typical first-time buyer budget. And they have attracted nearly 10 million views in the first weeks of 2026 alone.  

Used car dealers are reacting accordingly, with enquiries and replies also increasing 25 percent in January 2026.

“Demand for sub-£5,000 vehicles is incredibly strong,” said Gumtree’s Louis Maxwell. “We’re seeing a new generation of drivers turning to Gumtree as their first stop for affordable, reliable cars.”

Nearly half of 2025’s successful driving test passes were estimated to be people aged under 21.

Most in-demand first cars

Gumtree’s data from the first 40 days of 2026 reveals clear preferences, said Maxwell: “Practical hatchbacks from trusted brands with low running and insurance costs.”

Ford and Vauxhall duly top the brand rankings, thanks to a reputation for reliability, low ownership costs and wide parts availability.

“These brands have consistently been top choices for first-time drivers, and the data shows that trend is only strengthening.”

The Vauxhall Corsa takes the top car spot, says Maxwell, thanks to its affordable running costs and easy availability.

However, the Ford Fiesta follows it closely – “continuing its legacy as one of the UK’s most popular first cars”.

Top 10 most-viewed cars under £5,000

Used car sales opportunity

The boom in demand from new drivers opens up an opportunity for sellers, too.

“If you have a second car you no longer need, or you’re considering upgrading, now is a great time to list it and make some extra money,” said Maxwell.

“Sellers are benefiting from more views on budget-friendly listings, faster enquiries as newly-qualified drivers begin their search, and higher competition among buyers which is helping sellers secure better prices.

“It’s proving to be a strong start-of-year market thanks to many drivers actively looking for their first car.”

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