6:31 am, February 10, 2023
Last year saw the UK’s used car market decline by 8.5 per cent, new figures have revealed.
Data released today (Feb 10) by the SMMT show there were 6,890,777 transactions between dealers and buyers throughout 2022.
The figure is some 640,179 below 2021 levels and remains an alarming 13.2 per cent off the pre-pandemic total achieved in 2019.
The SMMT has put the fall in sales down to the squeeze on new car supplies, which have dogged production in recent years, including the global semiconductor crisis and the war in Ukraine.
Despite the decline, the end of the year did offer a glimmer of hope, with December experiencing a 0.8 per cent rise – the first increase since February.
That leap meant that the overall decline in Q4 was 4.3 per cent, making it less steep than the 18.8 per cent fall in Q2 and the 12.2 per cent drop-off in Q3.
Also bucking negative trends were sales of used BEVs, which rose by 35 per cent to their highest level of 71,071 units; sales of hybrid electric vehicles, which increased by 8.6 per cent, and sales of plug-in hybrids, which experienced a 3.6 per cent hike.
Despite that, the data suggests electrified vehicles have some way to go as they continue to make up just 4.1 per cent of all used car transactions.
Elsewhere, transactions of used diesel and petrol cars fell by 11.8 per cent and 7.7 per cent respectively, with a combined 6,594,880 units changing hands.
Mike Hawes, SMMT chief executive, said: ‘While the market headlines are negative, and reflective of the squeeze on new car supply last year, record electrified vehicle uptake is a bright spot and demonstrates a growing appetite for these models.
‘With new car registrations growth expected this year, more of the latest low- and zero-emission models should become available to second owners.
‘Accelerating uptake is key and will be dependent on drivers being assured of a positive ownership experience.
‘This means ensuring charging infrastructure keeps pace with demand as more new and used car buyers make the switch to zero-emission motoring than ever before.’
When it came to colours, black was the most popular choice for used car buyers in 2022, accounting for more than a fifth (21.6 per cent) of the market.
Blue ranked second, with a 16.4 per cent share, and despite grey topping the new car market, the colour ranked third for used cars at 16.3 per cent.
Some buyers opted to add a splash of colour to their journeys, with 4,461 pink, 6,708 turquoise and 18,658 bronze used vehicle transactions during the year.
In terms of the types of used cars being bought, superminis once again took the title for most popular segment, making up a third of all transactions (32.3 per cent), despite recording a nine per cent fall in volumes.
The smallest volume segment type was luxury saloons with a 0.6 per cent market share.
Overall, the south-east saw the most transactions at just over a million, closely followed by the north-west (753,028) and West Midlands (695,460).
What does the industry say?
EV boom at risk
Lingering supply issues held back used car sales against an exceptional 2021 performance, but the market has great momentum and last month we saw a record 80m visits to our site – nearly 10 million more than a year ago.
2022’s EV boom is, however, at risk as our data shows demand for used electric vehicles has been dampened by high energy prices in the past few months.
The used EV market will play a vital role in driving mass adoption of electric cars, and unless more drivers are prepared to consider second-hand alternatives, the government’s ambitious 2030 targets will be hard to achieve.
Ian Plummer, director, Auto Trader
Prices may fall then rise again
It appears the gap in demand for used vehicles did narrow between 2021 and 2022 as the year progressed.
Looking ahead to 2023, the hope is that the market should begin a path to a new paradigm, leading to average used car prices dropping.
However, given the recent news that new vehicle production levels in the UK hit their lowest output since 1956, prices of used cars could begin to rise again as demand outstrips supply.
Kevin Roberts, director of industry insights & analytics, CarGurus
Market should start to settle
The 0.8 per cent December rise gives us reasons to be positive about the resilience of that market heading into 2023.
Now, supply chain constraints are easing and the gap between demand and supply in the new car market is closing.
This should start to settle the market, with more affordable used cars available to drivers in the coming months.
Crucially, there was record demand for used electric cars in Q4 2022.
Lisa Watson, director of sales, Close Brothers Motor Finance
EVs are providing a bright spot
While the second-hand car market typically performs better than the new car market when times are tough, rising interest rates and darkening economic clouds have pegged back demand.
One bright spot is the jump in the number of electric vehicles coming on to the used market for the first time.
With new electric models still costing significantly more than conventionally fuelled rivals, greater availability of second-hand EVs should give the used market a welcome boost in coming months.
Mark Oakley, director, AA Cars
People are opting for DIY and used parts
Our latest research shows a growing number of Brits are prepared to get their hands dirty by carrying out DIY jobs to fix their cars themselves, as well as opting for used parts over new.
According to our research, half (50 per cent) of UK consumers say they would change their car windscreen wipers themselves, while 37 per cent would replace interior and exterior light bulbs.
While the cost of parts continues to be the main reason for many people purchasing used parts to fit themselves, we’re seeing an increasing number of people doing so for sustainability reasons, particularly among younger drivers.
Tony Tong, head of automotive, eBay UK
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