According to the Society of Motor Manufacturers and Traders (SMMT), the UK used car market continues to grow as more money-conscious consumers choose used cars over new ones.
Transactions in the used car market rose 4.3% year-on-year from July to September, with sales reaching 1.96 million.
Notably, sales of electric vehicles (EVs) increased by 57%, reaching 53,423 transactions – an increase of approximately 19,000 compared to the same period last year. Despite this record, electric vehicles still represent only 2.7% of the total used car market, while petrol and diesel vehicles together account for 91.7%. Hybrid models took care of the rest.
The best-selling used models remain the Ford Fiesta, Vauxhall Corsa, Volkswagen Golf, Ford Focus and Mini, underlining a trend towards proven choices in the second-hand market.
While used car sales are booming, the new car market tells a different story. Private consumer purchases fell 4% in the third quarter, reflecting reluctance to invest in new models due to economic uncertainty. This difference highlights the increasing appeal of affordable alternatives on the second-hand market, especially for electric vehicles.
Ian Plummer, commercial director of Auto Trader, Britain’s largest online used car marketplace, commented on the strong demand for mid-life electric vehicles, which are generally between three and five years old. He commented: “With demand soaring, especially for these vehicles, it is clear that affordability will play a crucial role in the UK’s move to electric.”
EVs in this age range are currently selling around ten days faster than other used cars on the Auto Trader platform, underscoring the importance of cost in driving EV uptake among consumers. However, SMMT CEO Mike Hawes warned that growth in the used EV market depends on a healthy new car market.
“The continued affordability of electric vehicles depends on increased consumer confidence and government incentives for new purchases,” Hawes said. “Without such support, the supply of affordable, second-hand electric cars could shrink, impacting drivers, the environment and the economy.”
The SMMT urges the government to review policies supporting the transition to electric vehicles. The primary policy, known as the Zero Emission Vehicle (ZEV) mandate, imposes sales quotas on automakers, who face fines if they don’t meet these targets. Industry insiders suggest some manufacturers are rationing petrol and diesel models to avoid fines.
Used vehicles remain dominant in the UK market, accounting for around four out of five car sales. In the first nine months of 2024, the total number of used vehicle sales grew by more than 330,000 to 5.89 million.