The UK’s used car market continues to grow, as more cash-conscious consumers opt for second-hand vehicles 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.
Notably, sales of electric vehicles (EVs) surged by 57%, reaching 53,423 transactions – an increase of around 19,000 compared to the same period last year. Despite this record, EVs still represent only 2.7% of the total used car market, with petrol and diesel vehicles making up a combined 91.7%. Hybrid models accounted for the remainder.
The top-selling used models remain the Ford Fiesta, Vauxhall Corsa, Volkswagen Golf, Ford Focus, and Mini, underscoring a trend for tried-and-tested choices in the second-hand market.
While used car sales are booming, the new car market tells a different story. Private consumer purchases dropped by 4% in the third quarter, reflecting a hesitance to invest in new models amid economic uncertainty. This divergence highlights the increasing appeal of affordable alternatives in the second-hand market, particularly for EVs.
Ian Plummer, commercial director of Auto Trader, the UK’s leading online used car marketplace, commented on the strong demand for “middle-aged” EVs, which are generally between three to five years old. He noted, “With demand soaring, especially for these vehicles, it’s clear that affordability will play a crucial role in the UK’s shift to electric.”
EVs in this age bracket are currently selling around ten days faster than other used cars on the Auto Trader platform, underscoring the importance of cost in driving EV uptake among consumers. However, Mike Hawes, CEO of the SMMT, warned that the growth of the used EV market depends on a healthy new car market.
“The continued affordability of EVs depends on greater consumer confidence and government incentives for new purchases,” Hawes said. “Without such support, the supply of affordable, second-hand EVs may shrink, impacting motorists, the environment, and the economy.”
The SMMT is urging the government to review policies to support the transition to electric vehicles. The primary policy, known as the Zero Emission Vehicle (ZEV) mandate, imposes sales quotas on car manufacturers, who face fines for failing to meet these targets. Industry insiders suggest that some manufacturers may be rationing petrol and diesel models to avoid penalties.
Used vehicles remain dominant in the UK market, accounting for roughly four out of five car sales. In the first nine months of 2024, the total number of used vehicle sales grew by over 330,000, reaching 5.89 million.
