According to the latest data released by the Society of Motor Manufacturers and Traders (SMMT), the second quarter of the year witnessed a 4.1% surge in the UK’s used car market. This translated to 1,832,267 vehicles changing ownership, marking an increase of 72,583 transactions compared to the same period in 2022. The growth reflects the sustained expansion in the new car market and improved availability, driven by the alleviation of supply chain disruptions. Throughout this year, sales have shown consistent growth each month due to the resolution of supply chain challenges. Despite the second quarter market still being 9.9% below 2019 levels, its recovery remains robust.
During the second quarter, sales of used battery electric vehicles (BEVs) experienced an impressive 81.8% surge, totalling 30,645 units. This achievement marked a new record, accounting for 1.7% of the market, up from 1.0% the previous year. Plug-in hybrids (PHEVs) and hybrids (HEVs) also maintained double-digit growth, with increases of 11.4% (18,437 units) and 29.5% (53,634 units) respectively. The expanding share of electrified vehicles led to a slight decline in the market share of conventionally powered cars, dropping from 95.7% to 94.3%. Notably, volumes of petrol and diesel cars grew by 2.5% and 2.8% respectively.
Superminis retained their status as the most popular used vehicle type, comprising 31.5% of all transactions and experiencing a growth of 4.4% to reach 576,980 units. Lower medium vehicles accounted for 26.5% of the market, while dual-purpose cars (SUVs) claimed a 15.1% share, rounding off the top three. This was backed up by the popular Fiesta (RIP) claiming the top spot, with the Corsa and Golf following behind. What is interesting to note is that the SUV domination doesn’t appear to have disrupted the used car market yet, with only the humdrum Qashqai scooping up the 10th position.
In terms of colour preferences, black maintained its position as the favoured choice for the 10th consecutive quarter, representing over one-fifth (21.3%) of all transactions. Grey and blue secured second and third places with market shares of 16.9% and 16.3% respectively.
Mike Hawes, Chief Executive of the SMMT, expressed his enthusiasm, noting the revitalised new car sector’s positive impact on the demand for used cars. He specifically highlighted the role of the new car market in encouraging more individuals to embrace electric vehicles. The ability to meet the increasing demand for pre-owned EVs relies on sustaining a thriving new car market and establishing accessible, dependable charging infrastructure powered by affordable, environmentally-friendly energy sources. This approach will enable more people to adopt zero-emission vehicles at price points that suit them, thereby contributing to the acceleration of environmental goals set out by the Government.
What is interesting to note however, is that these figures are still down on 2019, which saw 2,034,236 units exchange hands. The demand is certainly there and doesn’t seem to be slowing down, but will it ever reach pre-pandemic levels and will used car prices drop back to more sustainable levels?
[…] In September, the UK’s new car market showed robust growth, surging by 21.0% with 272,610 registrations, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). This marks the 14th consecutive month of growth and the second busiest month of the year, following March’s traditional market surge. This is parallel to the used car market growing as well. […]