Second-hand car sales soar as restrictions take their toll

It has been reported that second-hand car sales in the UK have more than doubled in the last few months due to coronavirus restrictions easing and a shortage of new models.

The Society of Motor Manufacturers and Traders (SMMT) said that the UK’s used car market grew 108.6 per cent in the second quarter of 2021. A total of 2,167,504 vehicles changed hands, up 6.6 per cent on 2019 pre-pandemic levels, the best Q2 performance and almost the best quarter ever for the used car market. The increase tracks the country’s gradual emergence from lockdown, as businesses reopened, demand for personal mobility increased and stock shortages in the new car market forced some consumers to turn to used models.

Compared to the near standstill of the economy last year, the used car market saw the biggest growth in April, up 307.4 per cent on 2020 with 724,743 transactions in the month, and up five per cent on pre-pandemic 2019. All months in Q2 saw significant growth, with May and June up 9.9 per cent and 4.6 per cent on 2019 respectively, the best performance for both months on record.

The top models in Q2 for this year were the Ford Fiesta (94,206 transactions), the Vauxhall Corsa (73,366) and the Ford Focus (72,105).

Despite the increased appetite for used cars, the SMMT also report that demand for used battery electric (BEV) and plug-in hybrid (PHEV) vehicles continued to grow in Q2. Buyers were keen to get their hands on the latest, green technology, helped by increased supply flowing through from higher new car sales and wider product choice, with the market share for plug-in vehicles increasing to 1.3 per cent of the used car market in the quarter. Both BEV and PHEV transactions more than tripled in Q2 (353.9 per cent and 349.8 per cent respectively) to 10,903 and 16,202.

Mike Hawes, SMMT chief executive, said: “This is welcome news for the used car market as transactions rebounded following nationwide lockdowns which closed retailers. More motorists are turning to used cars as supply shortages continue to affect the new car market, and the increased need for personal mobility with people remaining wary of public transport as they return to work. A buoyant used car market is necessary to maintain strong residual values which, in turn, supports new car transactions. We now need to see a similar rebound in new car sales to accelerate the fleet renewal necessary to deliver immediate and continuous improvements in air quality and carbon emissions.”