The Decline of Manual Transmission Cars: Residual Values Drop as Automatic Gears Dominate Market
The Decline of Manual Transmission Cars: What Does the Future Hold?
In a world where technology is constantly evolving, it’s no surprise that the automotive industry is also seeing significant changes. One of the most notable shifts in recent years has been the decline of manual transmission cars. Residual values of used cars with manual transmission are in decline, with some models worth as much as 21% less than their automatic equivalents. In fact, there are fewer manual cars for sale in 2024 than ever before, with some manufacturers like Volvo, Mercedes, Jaguar, and Lexus no longer offering any new models with manual transmission.
The rise of electric and hybrid-powered cars that are only compatible with automatic gears has played a significant role in this shift. Manufacturers like Jeep and Land Rover now offer only one manual model, further highlighting the dwindling availability of manual transmission cars. In 2018, there were 194 car models sold new in the UK with a traditional three-pedal transmission, but in 2024 this has dropped to just 98.
One of the reasons behind this decline is the notable increase in the number of British drivers taking automatic-only driving tests. According to Driver and Vehicle Standards Agency (DVSA) data, there has been a 269% increase in automatic-only driving tests over the past decade. Additionally, more than 62% of new cars sold in the UK are now ordered with automatic transmission, further solidifying the shift towards automatic cars.
The differences in value between automatic and manual cars are also evident in the market. For example, the average price for a four-year-old Citroen C3 with manual gears is £12,442, compared to £15,743 for an automatic model – a difference of 26%. Similar trends can be seen with other models like the Nissan Qashqai, Kia Sportage, and Volkswagen Polo.
Chris Knapman, editorial director at CarGurus, believes that we could be approaching the end of the road for the manual gearbox. While manual gearboxes have historically been favored for their lower cost and improved fuel economy, modern automatics are now just as efficient and responsive. However, manual gearboxes will likely continue to hold a special place in the hearts of enthusiast drivers for the greater interaction they offer.
For those looking to save money, opting for a manual car can still be a wise choice. Prices for used manual models are up to £3,466 (14%) lower on average compared to automatic models. While the future of manual transmission cars may be uncertain, one thing is clear – they will continue to be a staple in the automotive industry for years to come.