The UK’s used automotive market continues to develop, as extra cash-conscious shoppers go for second-hand automobiles over new ones, in line with the Society of Motor Producers and Merchants (SMMT).
Transactions within the used automotive market rose by 4.3% year-on-year from July to September, with 1.96 million gross sales recorded.
Notably, gross sales of electrical automobiles (EVs) surged by 57%, reaching 53,423 transactions – a rise of round 19,000 in comparison with the identical interval final yr. Regardless of this report, EVs nonetheless characterize solely 2.7% of the whole used automotive market, with petrol and diesel automobiles making up a mixed 91.7%. Hybrid fashions accounted for the rest.
The highest-selling used fashions stay the Ford Fiesta, Vauxhall Corsa, Volkswagen Golf, Ford Focus, and Mini, underscoring a development for tried-and-tested selections within the second-hand market.
Whereas used automotive gross sales are booming, the brand new automotive market tells a unique story. Non-public shopper purchases dropped by 4% within the third quarter, reflecting a hesitance to put money into new fashions amid financial uncertainty. This divergence highlights the rising attraction of inexpensive alternate options within the second-hand market, significantly for EVs.
Ian Plummer, business director of Auto Dealer, the UK’s main on-line used automotive market, commented on the robust demand for “middle-aged” EVs, that are typically between three to 5 years previous. He famous, “With demand soaring, especially for these vehicles, it’s clear that affordability will play a crucial role in the UK’s shift to electric.”
EVs on this age bracket are at present promoting round ten days quicker than different used automobiles on the Auto Dealer platform, underscoring the significance of price in driving EV uptake amongst shoppers. Nonetheless, Mike Hawes, CEO of the SMMT, warned that the expansion of the used EV market is dependent upon a wholesome new automotive market.
“The continued affordability of EVs depends on greater consumer confidence and government incentives for new purchases,” Hawes mentioned. “Without such support, the supply of affordable, second-hand EVs may shrink, impacting motorists, the environment, and the economy.”
The SMMT is urging the federal government to evaluation insurance policies to assist the transition to electrical automobiles. The first coverage, often called the Zero Emission Car (ZEV) mandate, imposes gross sales quotas on automotive producers, who face fines for failing to satisfy these targets. Business insiders recommend that some producers could also be rationing petrol and diesel fashions to keep away from penalties.
Used automobiles stay dominant within the UK market, accounting for roughly 4 out of 5 automotive gross sales. Within the first 9 months of 2024, the whole variety of used automobile gross sales grew by over 330,000, reaching 5.89 million.
