Recent months have seen a surge in used car sales, signifying a notable change in consumer behaviour. As new car purchases dwindle, the appeal of cost-effective used vehicles grows.
Economic pressures are pushing consumers towards more affordable options, with electric vehicles emerging as a prominent choice in the second-hand market.
Rise in Used Car Sales
The used car market has experienced a noticeable rise in activity, with transactions increasing by 4.3% year-on-year from July to September, totalling 1.96 million sales. This growth signals a shift as more consumers opt for pre-owned vehicles amidst economic challenges. New car purchases have dipped, reflecting an overall trend towards cost-effective solutions.
Electric Vehicles Gaining Popularity
Electric vehicles have shown significant growth within the used car sector, with sales surging by 57%, amounting to 53,423 transactions. Despite their rising popularity, EVs only constitute 2.7% of the overall used car market.
Petrol and diesel vehicles remain dominant, making up 91.7% of sales, while hybrid models account for the rest. This demonstrates the traditional preference that still prevails despite a growing interest in sustainable technologies.
Popular Used Car Models
The Ford Fiesta, Vauxhall Corsa, and Volkswagen Golf are among the top-selling used models, indicating consumers’ preference for reliability.
Ford Focus and Mini also continue to attract buyers, reflecting a consistent demand for well-known marques in the second-hand market.
These preferences indicate a cautious consumer base prioritising dependability and cost-efficiency over novelty in vehicle purchases.
Private Consumer Preferences
A decline of 4% in new car purchases amongst private consumers suggests hesitance due to economic instability.
This hesitation has highlighted the second-hand market as an attractive alternative, especially for electric vehicles.
The affordability of used EVs is playing a pivotal role in their increasing demand amid the broader economic landscape.
Industry Insights
Ian Plummer, the commercial director of Auto Trader, noted the rising demand for ‘middle-aged’ EVs, typically three to five years old. ‘With demand soaring, particularly for these vehicles, affordability will greatly influence the UK’s shift to electric,’ he said.
These vehicles are selling approximately ten days faster than other used cars on the Auto Trader platform, indicating their growing appeal.
Market Challenges and Opportunities
Mike Hawes, the CEO of the SMMT, cautioned that the expansion of the used EV market relies on the health of the new car market.
He emphasised that continued consumer confidence and government incentives are essential for maintaining the affordability of EVs.
Without such support, the supply of affordable second-hand EVs might decrease, impacting environmental and economic goals.
Policy Implications
The Zero Emission Vehicle (ZEV) mandate requires manufacturers to meet specific sales quotas, with penalties for non-compliance. This policy aims to promote cleaner technologies but has implications for traditional vehicle availability.
Some in the industry believe manufacturers might limit petrol and diesel models to align with ZEV mandates, affecting consumer choice.
Current Used Vehicle Market Trends
Used vehicles account for about 80% of the UK car market, highlighting their continued popularity among consumers seeking value for money.
In the first nine months of 2024, used car sales increased by over 330,000, reaching 5.89 million in total.
Future of the Used Car Market
The future of the used car market appears promising with its expansive growth, although it hinges on factors like economic stability and government policies.
The shift towards electric vehicles is gaining momentum, yet traditional vehicles remain a mainstay, showing a blend of old preferences and new interests.
The landscape of car sales will likely continue evolving, balancing innovation and tradition.
The used car market is expanding, driven by economic factors and changing consumer preferences. As electric vehicles gain traction, the focus on affordable, reliable options remains key.
The interplay between policy, market health, and consumer confidence will be critical in shaping the future landscape of vehicle sales.
