Used car sales climb as consumers shy away from new vehicles

The UK used car market continues to grow, with more money-conscious consumers choosing used cars over new ones, according to the Society of Motor Manufacturers and Traders (SMMT).

Transactions in the used car market rose by 4.3% year-on-year from July to September, with 1.96 million sales recorded.

It is worth noting that electric car sales increased by 57%, reaching 53,423 transactions, an increase of about 19,000 compared to the same period last year. Despite this record number, electric cars still represent only 2.7% of the total used car market, with petrol and diesel vehicles combined making up 91.7%. Hybrid models accounted for the rest.

The best-selling used models remain the Ford Fiesta, Vauxhall Corsa, Volkswagen Golf, Ford Focus and Mini, underscoring the trend towards tried and tested options on the second-hand market.

While used car sales are booming, the new car market tells a different story. Private consumer purchases fell 4% in the third quarter, reflecting a reluctance to invest in new models amid economic uncertainty. This difference highlights the growing appeal of affordable alternatives in the used car market, especially for electric vehicles.

Ian Plummer, commercial director of Auto Trader, the UK’s leading online used car marketplace, commented on the strong demand for ‘middle-aged’ electric cars, which are generally three to five years old. “With demand rising, especially for these vehicles, it is clear that affordability will play a crucial role in the UK’s transition to electric vehicles,” he noted.

Electric vehicles in this age group are currently selling about ten days faster than other used cars on the Auto Trader platform, underscoring the importance of cost in increasing the uptake of electric vehicles among consumers. However, SMMT CEO Mike Hawes warned that the growth of the used electric car market depends on a healthy new car market.

“The continued affordability of electric vehicles depends on increased consumer confidence and government incentives for new purchases,” Hawes said. “Without this support, the supply of affordable used electric vehicles may shrink, impacting motorists, the environment and the economy.”

SMMT urges the government to review policies to support the transition to electric vehicles. The underlying policy, known as the zero-emission vehicle (ZEV) mandate, imposes sales quotas on automakers, which face fines for failing to meet those goals. Industry insiders point out that some manufacturers may ration petrol and diesel models to avoid penalties.

Used cars remain dominant in the UK market, accounting for nearly four in five car sales. In the first nine months of 2024, the total number of used car sales rose by more than 330,000, to 5.89 million.