The used car market sees a rise amid economic uncertainties.
- Used car transactions grew by 4.3% from July to September, totalling 1.96 million.
- Sales of used electric vehicles (EVs) rose by 57%, yet they only represent 2.7% of the market.
- Popular models include Ford Fiesta, Vauxhall Corsa, and Volkswagen Golf.
- The new car market shows a decline with a 4% drop in private purchases.
In the third quarter of this year, the used car market experienced a 4.3% increase in transactions, reaching 1.96 million sales. This growth is particularly remarkable given the economic uncertainties that have deterred many from purchasing new vehicles. Significantly, sales of used electric vehicles (EVs) surged by 57%, marking an increase of approximately 19,000 units compared to the same period last year. Despite this impressive growth, EVs still constitute only 2.7% of the overall used car market, while petrol and diesel vehicles dominate, comprising 91.7% of sales. Hybrid vehicles account for the remainder of the market.
Among the top-selling used models are familiar names such as the Ford Fiesta, Vauxhall Corsa, and Volkswagen Golf, suggesting a consumer preference for reliable, established models. These vehicles continue to appeal to cost-conscious buyers seeking value in the second-hand market. While the used car sector thrives, the new car market presents a contrasting picture. Purchases by private consumers dropped by 4% during the same quarter, reflecting a reluctance to invest in new models due to economic factors.
Ian Plummer, commercial director of a leading online used car marketplace, highlighted the growing demand for ‘middle-aged’ EVs, which are typically three to five years old. He stated, “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 middle-aged EVs are selling faster than other used cars, illustrating the vital role of cost-efficiency in consumer decisions.
However, concerns remain regarding the sustainability of this growth in the used EV market. Mike Hawes, CEO of an automotive industry body, warned that continued growth relies on a robust new car market. He emphasised that governmental incentives are essential to foster consumer confidence and ensure the availability of affordable used EVs. The automotive industry has been urging a review of policies, such as the Zero Emission Vehicle mandate, which sets sales targets for manufacturers.
In the first nine months of the year, used car sales reached 5.89 million, an increase of over 330,000. This statistic underscores the preference for used vehicles, as they account for four out of every five car sales in the UK.
The shift towards used vehicles, particularly EVs, highlights economic caution and a growing demand for affordable alternatives.
