Second-hand car sales soar
Used-car sales in the UK have recorded their best figures for a second quarter, after trade increased by 108.6 per cent compared to the same period in 2020 when coronavirus lockdowns disrupted trade.
A total of 2,167,504 vehicles changed hands between April and June 2021, which was also 6.6 per cent higher than pre-pandemic levels in 2019, according to the Society of Motor Manufacturers and Traders (SMMT).
It says 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.
The biggest growth for used cars came in April, with sales up 307.4 per cent on 2020 with 724,743 transactions in the month. This was also five per cent higher than in April 2019.
Numbers in May and June increased by 9.9 per cent and 4.6 per cent respectively, when compared to the same months in 2019.
The rebound in the second quarter has pushed registrations to 3,855,259 for the first half of 2021, up 33.3 per cent from a year ago. However, this remains 4.9 per cent, or almost 200,000 units, lower than the half-year tally from 2019.
Demand for used battery electric vehicles (BEVs) and plug-in hybrids (PHEV) continued to grow in the April-June period, with transactions more than tripling to 10,903 and 16,202 respectively.
Such vehicles still only account for 1.3 per cent of market share, with petrol and diesel powertrains accounting for 96.4 per cent of the quarter’s used-car market.
Increased demand overall has also led to an increase in sales of older used cars with only 12.7 per cent of all vehicles sold being three years or under, the lowest on record.
Mike Hawes, SMMT chief executive, says: “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.”
