Social distancing may lift used-car market
The used-car industry in the UK is pinning its hopes of a recovery in sales on people snubbing public transport and preferring to drive themselves because of the Covid-19 pandemic.
It comes after latest figures show sales in the used-car market declined by 8.3 per cent in the first quarter of 2020 when compared to the same period a year ago.
The statistics from the Society of Motor Manufacturers and Traders (SMMT) reveal the year-on-year growth in January and February, up 2.9 per cent and four per cent respectively, was wiped out by a 30.7 per cent fall in March compared to the same month in 2019.
It was the lowest March since records began in 2001 as coronavirus lockdown measures came into effect partway through the month and forced dealers to close.
Mike Hawes, pictured, chief executive of SMMT, says subdued activity for the market is likely to continue into the second quarter but there was a glimmer of hope for the industry.
“While it is tricky to predict future demand, the impact of social distancing requirements on public transport means that, for many people, the car will play an even more important role in helping them travel safely to work,” he adds.
“Re-opening new and used car outlets will support this, enabling more of the latest, cleanest vehicles to filter through to second owners and help support the UK’s green growth agenda.”
The latest quarterly figures show demand for pre-owned plug-in electric vehicles grew 13.6 per cent in the first three months of 2020 compared to the same period in 2019.
The number of hybrids changing hands also rose, up 11.5 per cent, taking the total number of used alternatively fuelled vehicle sales to 36,493.
Meanwhile, petrol and diesel car transactions fell by 9.3 per cent and 7.8 per cent respectively over the same period. However, these vehicles combined still accounted for 97.9 per cent of all used sales in the quarter, equivalent to 1,814,598 cars.
Despite the challenging conditions, the latest data indicates average used car prices in March were down only 0.2 year-on-year and consumers are continuing to search and browse used cars online.
