8:19 am, February 10, 2025
The used car market grew significantly in 2024 with demand for second-hand EVs contributing to to a strong year for the industry.
That is according to the SMMT, which has today announced that 7,643,180 used car transactions took place in 2024 – a rise of 5.5%.
As was also the case in 2023, sales rose in every month throughout the year, with Q4 up 4.0% to 1,746,051 units.
Overall, 400,488 more vehicles changed hands in 2024 than they did in 2023, showing that demand remains solid, despite pressures on buyers.
When it came to the types of car being sold, superminis remained the most popular, accounting for one in three (32.3%) of all used cars sold.
They were closely followed by lower medium-sized cars, with a 27.1% share of the market and dual purpose vehicles, which rounded off the podium, making up 15.9% of sales.
Dual purpose also recorded the strongest rise in volumes, up 10.7%, reflecting the fact that it is now the best-selling segment in the new car market.
At the other end of the spectrum, demand for luxury saloons went through the floor, with the segment making up just 0.5% of the market.
While grey remained most popular in the new car market, black cars were favoured among used car buyers, with more than 1.6 million (21.3%) opting for the colour.
Grey did come second, with a 17.6% share, and blue took third, taking 16.2% of sales. Combined, the trio accounted for more than half (55.1%) of all cars sold.
Colours which rose in popularity included pink, which sold 5,171 units (up 301) and maroon, which appealed to 4,659 buyers.
Turquoise also appears to be in vogue and the shade saw the biggest growth of any colour – up 11.2% to 8,266 cars.
On the flip side, cream proved to be the least popular used car colour with 4,657 transactions.
Electric demand soars
One of the biggest topics on the lips of used car dealers throughout 2024 was how to sell used EVs, as values continued to fall.
Despite the obvious headaches they caused retailers, demand for BEVs continued to rise last year, rising by an incredible 57.4% to a record 188,382 units.
The powertrain also achieved a new high for market share, at 2.5%, up from 1.7% in 2023 and 13 times larger than back in 2019.
BEV share in Q4 was 2.7%, matching Q3’s performance, while sales of plug-in hybrids and hybrids also grew, up 32.2% to 92,120 units and 39.3% to 306,114 units respectively.
Combined, the number of used electrified vehicles changing hands increased by 43.3% on 2023, accounting for a 7.7% of all sales.
Meanwhile, petrol and diesel powered cars accounted for 92.1% of all used car transactions – down slightly from 94.3% last year.
Petrol remained dominant, up 6.8% to represent 57.1% of the market, while diesel transactions dropped by 2.4%, accounting for 35% of all transactions.
Reacting to the findings. Mike Hawes, SMMT CEO, said: ‘The used car sector’s 25-month growth streak is good news for fleet renewal and for consumers benefitting from the greater choice filtering through from the new market.
‘Record sales of second hand EVs also demonstrates strong appetite for these cutting-edge cars at lower price points.
‘Ensuring ongoing growth, however, means maintaining that affordability, along with supply, which requires meaningful fiscal incentives to stimulate consumer demand for new EVs and removing the VED expensive car tax disincentive that risks dragging down used EV affordability for years to come.’
‘A significant step forward in the electric vehicle transition’
In response to the data, Auto Trader said that 2024 marked a ‘significant year for the used car market’.
The digital giant also repeated its calls for the government to support uptake of used EVs, with suggestions including removing additional tax and running cost charges.
Ian Plummer, commercial director at Auto Trader, said: ‘2024 was another significant year for the used car market; prices were stable, cars sold at a record pace, and demand was exceptionally strong, as reflected in the near billion visits to our marketplace.
‘All this against an uncertain economic and political backdrop. With car buyer confidence remaining positive, I’m sure 2025 will be another strong year for used car sales.
‘The year also marked a significant step forward in the electric vehicle transition. Last year demand for used EVs surged 51% on Auto Trader, and they sold faster than any other fuel type.
‘With a growing number of used electric models aged around 3-5 years old at price parity with petrol equivalents, affordability is clearly the tipping point for car buyers. Combined with more choice and greater availability, the case for switching has never been more compelling.
‘Knowing that affordability of EVs is the most significant barrier to people making the switch, we would urge the government to financially support the sale of both new and used EVs which could be achieved by support on the upfront cost, underwriting finance on the cars as has been mooted, or by removing additional tax and running cost charges.
‘At this point in the transition, we need to offer more positives of making the switch, not create more barriers to entry.’
