UK’s March 2025 Number Plate Update May Lead to Depreciation in Petrol, Diesel, and Electric Vehicle Values

The UK’s car market is set to experience significant changes as the new ’25’ number plates are introduced on March 1, 2025. While the bi-annual update to number plates is a routine event, experts warn that it could have a major impact on petrol, diesel, and electric car prices across the UK. This potential market shift is prompting car buyers and sellers to reconsider their strategies.

How Do UK Number Plates Work?

The Driver and Vehicle Licensing Agency (DVLA) follows a set system for issuing number plates. Every year, two new registrations are introduced:

• March registrations use the last two digits of the year (e.g., ‘25’ for cars registered between March and August 2025).
• September registrations use the year plus 50 (e.g., ‘75’ for cars registered between September 2025 and February 2026).

This system allows consumers to quickly identify the age of a vehicle, making the arrival of new plates an important event in the buying and selling cycle. You can learn more about the UK’s number plate system on GOV.UK.

Why Do Number Plate Changes Affect Car Prices?

Every time a new registration plate is released, the perceived value of older vehicles drops, leading to depreciation. Here’s how this works:

• New car demand surges: Consumers looking for the latest plate tend to buy brand-new cars, reducing demand for models with older registrations.
• Used car values decline: Vehicles with previous number plates often become less desirable, leading to price drops in the second-hand market.
• Dealership discounts on older stock: In an effort to clear out inventory, dealerships may lower prices on unsold models with older plates, impacting overall car values.

Impact on Petrol and Diesel Car Prices

Petrol and diesel vehicles have already faced declining demand in recent years due to the UK’s push for electric vehicles (EVs) and stricter emission regulations. The new ‘25’ plates could accelerate depreciation for traditional fuel cars as:

• More buyers opt for new models with better efficiency and lower emissions.
• Government policies encourage a shift toward low-emission vehicles, discouraging investment in petrol and diesel cars.
• Second-hand petrol and diesel prices could take a hit as dealerships discount older stock to clear space for newer models.

To check the latest updates on vehicle tax and emission regulations, visit the DVLA’s emissions standards guide.

How Electric Car Prices Will Be Affected

Electric vehicles (EVs) are becoming increasingly popular, but the new plate introduction could still affect their resale values. Factors to consider include:

• EV buyers may wait for newer models with improved range, battery life, and technology.
• Older EV models could drop in value faster due to rapid advancements in EV technology.
• Government incentives on new EV purchases may drive demand toward fresh ‘25’ plate models rather than used EVs.

For the latest EV grants and incentives, visit the UK Government’s EV support page.

Should You Buy or Sell Before the ‘25’ Plate Launch?

If you’re considering buying or selling a car, here’s what you need to know:

For Buyers:

• If you want a good deal on a used car, March is a great time to buy, as older models will likely be discounted.
• If you prefer having the latest registration, wait for the ‘25’ plates in March or the ‘75’ plates in September.
• Consider how resale value might change depending on fuel type—petrol and diesel vehicles may depreciate faster than EVs.

For Sellers:

• If you own a used petrol or diesel car, consider selling before March to avoid a potential price drop.
• Dealers will likely offer lower trade-in values after the ‘25’ plates launch.
• If you own a relatively new EV model, waiting might be beneficial as demand for used EVs is rising.

What Experts Are Saying

According to industry analysts, the number plate changes will impact the car market, but to varying degrees depending on fuel type:

• Petrol & Diesel: Prices are likely to fall due to declining demand and policy shifts toward EVs.
• Electric Vehicles: While newer EVs remain popular, older models may see quicker depreciation due to technological advancements.
• Luxury and Classic Cars: These vehicles tend to be less affected by number plate changes, as their value depends more on rarity than registration year.

Government’s Role in the Shift

The UK government has been pushing for zero-emission vehicles, and by 2030, the sale of new petrol and diesel cars will be banned. This will further accelerate depreciation for traditional vehicles.

To read more about upcoming car industry regulations, visit GOV.UK’s transport policy page.

Final Thoughts

The March 2025 number plate change is expected to have a significant impact on UK car prices, particularly in the used vehicle market. Buyers should take advantage of discounts on older models, while sellers should be mindful of depreciation risks—especially for petrol and diesel cars.

If you’re planning to buy or sell a car, stay informed about market trends and government policies to make the best financial decision. For more official guidance, visit DVLA’s vehicle registration page.

Are you planning to buy or sell a car soon? Share your thoughts in the comments below!

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