6:42 am, August 8, 2024
Electric cars drove a surge in used car sales in the second quarter, latest figures show.
New data published by the Society of Motor Manufacturers and Traders (SMMT) shows that over 1.96m transactions took place in Q2 – a 7.2% uplift on the same period last year.
The second quarter’s rise also helped drive a 6.8% uptick in year-to-date figures compared to Q2 2023, which now stands at 3.93m cars.
The SMMT said this is partly a result of sustained growth in the new car market leading to better choice and availability of used cars.
Sales of used battery electric cars rose by 52.6% year on year to take a record quarterly market share of 2.4% with nearly 46,800 transactions.
The first six months of this year saw overall used car sales just 3.0% below pre-coronavirus pandemic levels.
SMMT chief executive Mike Hawes said: ‘It’s encouraging to see the used car market continue its recovery, with choice and affordability rejuvenated by the new car sector’s sustained run of growth.
‘The increased supply of electric vehicles to second and third owners is helping more motorists make the switch – underlining the importance of energising the new EV market to support a fair transition for all.
‘Maintaining momentum requires reliable, affordable and green EV charging up and down the country, and incentives to get all of Britain on board the net zero transition.’
The Ford Fiesta was the UK’s best-selling used car between April and June, with 77,000 transactions.
This was followed by the Vauxhall Corsa (63,700) and the Ford Focus (59,000).
Black was the most popular colour during the second quarter, accounting for 415,588 sales. It was followed by grey (344,572) and blue (319,707).
What the industry thinks
More barriers to EV ownership need to be removed
There is a consumer desire to switch to used electric vehicles, with drivers looking to the used market as an affordable entry point to transition to lower emission vehicles.
However, if the new government wants to encourage even greater EV adoption and meet sustainability targets, they will need to act fast – removing barriers for more charging points, providing financial incentives for private car buyers and introducing new legislation on a single charging app.
Then we could really see EV sales skyrocket across both the new and used car markets.
James Wilson, chief operating officer, Motorway.co.uk
Used EVs shifting quickly
The maturing electric market’s been a bright spot this year, particularly those ‘middle-aged’ models which have benefitted from a significant softening in price. Used EVs are currently selling at their fastest rate in eight months, while those aged 3-5-years-old, which are now broadly at price parity with their petrol counterparts, are the fastest selling segment of the used car market, and by some margin. Clearly, when the price is right, buyers are eager to make the switch.
More broadly, the used market has had its challenges in 2024, but the first half of the year got off to a roaring start and it’s comfortably sustained its momentum. Retail prices returned to seasonal norms, used cars sold at near record pace, and as reflected in the additional 40m visits to our platform over the period, consumer demand has been strong, helping to fuel the uptick in sales.
With such solid market fundamentals, combined with improving economic and political stability, we’ve every expectation the market will continue on its trajectory, and predict overall sales will be up around 5% by the end of the year.
Ian Plummer, commercial director, Auto Trader
Market showing remarkable resilience
The Q2 results for the UK used car market are encouraging and played out as we had forecasted. Despite subdued retail demand, margin pressures, and ongoing constraints in prime 3-year-old retail stock, the market has shown remarkable resilience, marking its sixth consecutive quarter of growth.
The surge in BEV sales is particularly promising, reflecting a significant shift in buyer preferences. However, as we look ahead to the year’s second half, it’s important not to get too giddy.
Supply will remain a battleground, and the composition of the car parc is shifting faster than consumer preferences. While used values may have settled compared to the volatility seen last Q4, this year’s Q4 will likely see renewed turbulence as the rush to meet ZEV mandate targets intensifies in the new car market.
Philip Nothard, insight director, Cox Automotive
