Used car transactions have seen an upturn as consumers increasingly look past new vehicles due to cost concerns and economic uncertainty.
- From July to September, used vehicle sales rose by 4.3% year-on-year, totaling 1.96 million purchases.
- Electric vehicles (EVs) experienced a notable surge in used car sales, jumping 57% to 53,423 transactions.
- Despite the uptick, EVs only make up 2.7% of the used car market, whereas petrol and diesel cars dominate at 91.7%.
- Economic conditions are shifting consumer preferences towards more affordable, proven choices in the used car sector.
From July to September 2024, there was a marked increase in used car sales, with transactions up by 4.3% compared to the same period last year. This period saw 1.96 million sales, indicating a substantial market shift as consumers opted for second-hand vehicles over new ones. The rise in used car transactions points to a growing trend of economic caution among buyers, driving the market towards more accessible options.
Within the used car segment, electric vehicles (EVs) have made a striking impact. Sales soared by 57%, reaching 53,423 transactions during the quarter, representing a notable increment of approximately 19,000 units year-over-year. Despite this impressive growth, EVs still comprise a modest 2.7% of the total used car market, emphasizing the dominance of petrol and diesel cars, which together account for 91.7%. Hybrid models fill the remaining percentage, reflecting a diverse yet traditional choice among consumers.
The preference for certain models remains evident, with familiar brands such as the Ford Fiesta, Vauxhall Corsa, Volkswagen Golf, Ford Focus, and Mini leading the sales charts. These models highlight a consumer inclination towards well-established and reliable vehicles. Meanwhile, the new vehicle market signals a contrasting trend, as private consumer purchases dropped by 4% in the third quarter. This decline underscores consumer hesitancy in committing to new car investments amid uncertainties.
Ian Plummer, commercial director of a prominent UK online car marketplace, sheds light on the shifting dynamics, remarking on the surge in demand for middle-aged EVs, specifically those between three to five years old. He notes, “With demand soaring, especially for these vehicles, it’s clear that affordability will play a crucial role in the UK’s shift to electric.” These EVs are notably selling about ten days faster than other used cars, pointing to affordability as a key factor in the increased uptake.
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, highlights a potential challenge. He stresses that the flourishing used EV market is contingent upon a robust new car market. “The continued affordability of EVs depends on greater consumer confidence and government incentives for new purchases,” he asserts. Without such measures, the supply of affordable second-hand EVs might dwindle, affecting consumers and the broader economy. The call for government action is growing, with the SMMT urging a review of policies to foster the transition towards electric vehicles.
The trend indicates a strategic consumer shift towards more affordable used vehicles, influenced by both economic factors and evolving preferences for electric options.
