Due to economic uncertainty, consumers increasingly turn to used cars as a budget-friendly option.
- The used car market saw a 4.3% increase in transactions from July to September, totalling 1.96 million sales.
- Electric vehicles (EVs) in the used market have surged by 57%, yet they make up just 2.7% of total sales.
- High demand exists for ‘middle-aged’ EVs, selling faster than other used cars.
- The health of the new car market is vital to sustaining the growth of affordable used EVs.
The appeal of used cars is on the rise as new vehicle sales decline. From July to September, transactions in the used car market increased by 4.3%, amounting to 1.96 million sales. This trend is evident in the rise of electric vehicle (EV) sales, which surged by 57% to reach 53,423 transactions compared to the same timeframe last year. Despite this growth, EVs still constitute only 2.7% of total used car sales, with petrol and diesel models dominating at 91.7%.
Certain models continue to lead the market, such as the Ford Fiesta, Vauxhall Corsa, and Volkswagen Golf, highlighting consumer preference for reliable choices. The decline in new vehicle purchases, dropping by 4% in the third quarter, reflects a cautionary approach by private buyers amid economic uncertainties. This situation underscores the attractiveness of more economical alternatives within the second-hand market, including EVs.
Ian Plummer, from Auto Trader, noted the significant demand for three to five-year-old EVs, stating, “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 selling approximately ten days quicker than other used vehicles, indicating that cost remains a significant driver for consumers transitioning to electric.
However, the head of the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, cautions that the expansion of the used EV market is contingent on a healthy new car industry. According to Hawes, “The continued affordability of EVs depends on greater consumer confidence and government incentives for new purchases.” Without these elements, the availability of reasonably priced, second-hand EVs could diminish, impacting consumer choice and environmental progress.
The dominant emphasis on used vehicles is clear as they constitute nearly 80% of all car sales in the UK. The first nine months of 2024 alone saw over 330,000 additional used car sales, totalling 5.89 million. Additionally, industry discussions reveal that policies such as the Zero Emission Vehicle (ZEV) mandate, which enforces sales quotas, may affect the availability of petrol and diesel models as manufacturers strive to meet targets.
The increasing preference for used cars, particularly EVs, highlights the need for supportive policies to sustain growth in the second-hand market.
