Will the 2035 ICE Ban Transform the British Used Car Market?

The UK government has confirmed a 2035 ban on the sale of new petrol and diesel vehicles. While much of the focus has been on the rise of electric vehicles (EVs) and the readiness of infrastructure, one major question remains less explored: what happens to the market of used internal combustion engine (ICE) cars? With millions of British Citizenship holders relying on second-hand vehicles, this policy shift could have implications for affordability, availability and the long-term value of traditional cars.

This guide will explore how the 2035 ICE ban might transform the used car market in the UK and if this idea is nothing more than a pipe dream for those in charge of the country. Continue reading to find out more about this ongoing issue.

Short-Term Market Effects of the ICE Ban

The used ICE market may experience a notable surge in demand as many consumers delay the transition to electric vehicles. While EV adoption is rising across the UK, there’s problems like high purchase costs, limited access to home charging and persistent concerns about battery degradation. These are prompting drivers to stick with what they know and avoid purchasing electric vehicles. For these buyers, a second-hand petrol or diesel vehicle offers a more familiar, as well as being more readily available in today’s market when compared to the sustainable alternative.

However, as the 2035 ban approaches, consumer attitudes are expected to shift more decisively. The idea of purchasing a car that may be considered obsolete within a decade could begin to weigh heavily on the market. Younger buyers may begin to prioritise long-term value and future-proofing over immediate cost savings, leaning more toward electrified options even if it means compromising slightly on spec or size.

The Role of Infrastructure and Affordability

Despite government ambitions, the rollout of EV infrastructure has been uneven. This creates differences in charging access between urban and rural areas, and even among different regions within the same city. For those without off-street parking or consistent access to public chargers, EV ownership can feel like a gamble. This lack of certainty reinforces the appeal of used ICE vehicles, which offer reliable mobility without the need for new charging routines.

Affordability further complicates the picture. Although the total cost of ownership for EVs is narrowing compared to ICE vehicles, the upfront purchase price remains a significant challenge for many households who can’t afford the fees. This is especially true in the used market, where petrol and diesel cars continue to dominate lower price brackets. A five-year-old petrol hatchback may sell for £5,000 or less, while a used EV of comparable age often still commands a premium.

There’s also concerns around battery health, limited model choice and uncertainty over long-term resale value, which have made some used EV buyers hesitant. For many, this means continuing to purchase and maintain used petrol or diesel models well into the 2030s, particularly when faced with limited financial flexibility.

ULEZ Zones and Taxation

Regional regulations and financial incentives are already influencing the used car market, particularly through the expansion of clean air zones like London’s Ultra Low Emission Zone (ULEZ). As ULEZ restrictions expand to other cities, the economic case for owning an older ICE vehicle is growing weaker.

Benefit-in-Kind (BIK) tax rates for company cars strongly favour electric vehicles, creating a powerful incentive for businesses and their employees to switch away from ICE models. This shift in corporate vehicle purchasing behaviour reduces the supply of quality used ICE vehicles entering the market from fleet disposals, tightening availability in certain areas of the UK that are away from the major cities of London and Manchester.

Long-Term Outlook

Experts anticipate a growing divide in the second-hand market by the early 2030s. ICE cars could retain niche value but for the majority, depreciation will likely increase. Insurance premiums, maintenance costs and stricter environmental regulations may further erode value. Meanwhile, improvements in EV affordability and battery durability will gradually shift consumer confidence.

At the same time, stricter environmental regulations will likely impose additional hurdles for ICE cars, including more frequent emissions testing and possible restrictions on vehicle use in certain areas. These regulatory pressures will make owning and operating older petrol and diesel vehicles less convenient and more costly.

Conclusion

The 2035 ICE ban won’t erase the used petrol and diesel market overnight, but it will reshape it as we see less of them being driven across the UK. Over the next decade, used ICE vehicles may see a short-lived boost in demand before entering a period of gradual decline. Regional infrastructure, policy enforcement and consumer sentiment will all play a role in determining just how fast this shift occurs. For now, Britain's second-hand market sits on a knife’s edge between old habits and a zero-emissions future.