The UK’s used car market started the year on a high, with 2,020,990 vehicles changing hands in Q1. This is the first time sales have breached two million in the first quarter since 2019.
Sales grew by 2.7% on the same period last year, capping off nine consecutive quarters of growth as the market responded to greater supply from the new car sector.
Petrol remained the best selling fuel type, rising 2.1% to 1,149,855 units, while diesel experienced a 3.1% decline to 679,739 units.
Electric car sales accelerating
Hybrids attracted record numbers of second and third owners, up 30.2% to 98,830 units, while 23,540 plug-in hybrids changed hands, up 14% on the same period last year.
Battery electric cars recorded the highest growth, increasing by 58.5% to 65,850 units and a record 3.3% share of all transactions.
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The SMMT said this positive performance must continue to deliver the UK’s net zero goals. But it warned that long term success relies heavily on healthy demand for new electric cars, making government incentives paramount.
It suggested that halving VAT on new electric vehicles (EVs) and scrapping or amending their liability to the vehicle excise duty (VED) expensive car supplement, alongside equalising VAT paid on public charging to domestic rates, would all help increase uptake of new cars and, in turn, promote a vibrant used market.
Strong start to the year
Mike Hawes, the SMMT’s chief executive, said: “The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fuelled by a recovering new car market. Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch.
“Sustaining and expanding this growth, however, depends on a healthy supply of EVs from the new car market – which in turn requires fiscal incentives alongside a nationally accessible and affordable charge point network so that everyone, whatever their budget or driving needs, can benefit from zero-emission motoring.”
James Hosking, managing director of AA Cars, said: “Recent economic indicators paint a cautiously optimistic picture. Inflation dipped unexpectedly to 2.6%, easing some pressure on household finances. In response, this week the Bank of England dropped the base rate again, which should further boost consumer confidence and demand in the used car market.
“Affordability remains a powerful driver, and electric vehicles are increasingly at the heart of this trend. Our data reveals prices of the UK’s most popular used EVs and hybrids fell by 10% year-on-year in Q1, making them more accessible to a broader base of buyers.
“As more models enter the second-hand market, including newer, longer-range EVs, buyers are benefitting from increased variety and competitive price points. This is helping to fuel the continued growth of EVs in the used market.”
