The UK’s used car market saw over two million transactions in the first quarter. This is the first time such a figure has been achieved since before the COVID-19 pandemic, suggesting the market is firmly back on track.
According to the SMMT, a total of 2,020,990 units changed hands in the period, an increase of 2.7%. It was also the ninth-consecutive quarter of growth, following the pandemic and resulting supply crisis.
The figures highlight that more vehicle owners are looking to older models to meet their needs. The consistent increase in used car sales is good news for the aftermarket, and will likely mean that the UK car parc will continue to age.
Used car stability
The used car market’s performance is in contrast to the UK’s new car market. While it achieved growth of 6.4% in the first quarter, this is due to a strong performance in March. The plate-change month’s volume of registrations offset declines in January and February.
For the used car market, results across January and February were slow to begin with, but not as perilous as new car deliveries. January saw a 1.4% improvement in transactions. In February, sales dipped by 0.3%, but March saw a strong bounce back, with sales up 6.9%. This meant 45,833-units more units changed hands in the last month of the quarter.
The small decline in February may have been down to supply. The month is generally a slow one in the new car market, and any sales in preceding years will not have translated into good supply for used cars. Buyers may have waited until March, where there was greater choice, especially with fleets getting rid of older models.
Therefore, the used car market seems in good shape, and in contrast to uncertainty in the new car market, will likely continue to improve as the year continues.
Petrol leads
Petrol remained the best-selling fuel type in the first quarter of the year. Transactions rose 2.1% to 1,149,855 units, dominating the used car market. However, diesel models saw a decline of 3.1%, with 679,739 sales.
However, compared to the 33,833 registrations of new diesels in the same period, this is a significant amount of diesel transactions. The decline, and lower number compared to petrol, is likely down to a lack of supply.
As fewer new diesels are sold, there are less used models available. Those that are could likely be older, meaning increased awareness of diesel servicing is likely to be needed in workshops.
Growth in EVs
Full hybrids attracted record numbers of transactions in the quarter, with registrations up 30.2% to 98,830 units, according to the SMMT.
A total of 23,540 plug-in hybrids changed hands, up 14% year on year. Battery-electric vehicles recorded the highest growth in the country, with a 58.5% rise to 65,850 sales. This gave the technology a 3.3% share of all used-car transactions.
The BEV performance meant the technology continued its streak as the fastest-growing in the UK used car market. Buyers looking for a zero-emission car may increasingly turn to the used car market in coming months, to avoid paying the expensive car supplement on new models costing over £40,000.
Used BEVs will need servicing at some point. While they make up a small percentage of used transactions, and the overall car parc, their numbers are growing. This is an area that garages should be keeping an eye on to ensure they are ready to work with the technology.
Small cars prove popular
Smaller cars remained the largest segment in terms of demand, with superminis again the best-selling, accounting for 32.4% of all used-car transactions. They were followed by lower medium cars with a 27% market share.
Dual purpose models also proved popular, accounting for 16.8% of sales. Combined, these segments represented 76.2% of all transactions in the period.
Specialist sports, executive, upper medium and MPV were the only segments to record declines in Q1, down 6.1%, 3.5%, 1.6% and 0.4% respectively.
The most popular used car in the country was the Vauxhall Corsa, with 8,308 transactions in the first quarter. This was followed by the Nissan Qashqai, with 7,462 sales. Rounding out the top three was the Volkswagen Golf, with 6,853 units changing hands.
‘The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fuelled by a recovering new car market,’ commented SMMT Chief Executive Mike Hawes. ‘Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch.
‘Sustaining and expanding this growth, however, depends on a healthy supply of EVs from the new car market – which in turn requires fiscal incentives alongside a nationally accessible and affordable charge point network so that everyone, whatever their budget or driving needs, can benefit from zero emission motoring.’
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