UK’s Used Car Market Sees Strong Growth in Q1 2024, Led by Surge in Electric Vehicle Sales
The UK’s used car market is booming, with sales growing by 6.5% in the first quarter of 2024. This marks the strongest start to a year since before the pandemic in 2019. The market is showing signs of recovery, with sales increasing for 16 consecutive months.
One of the most significant trends in the used car market is the rise of electric vehicles (EVs). Sales of second-hand electric cars surged by 71.0%, making them the fastest-growing powertrain type. This growth has led to a record market share of 2.1% for EVs. The increasing affordability of EVs, with prices falling by over 30% in 2023, has driven demand for these vehicles.
Hybrids and plug-in hybrids also saw an increase in sales, with volumes rising by 49.3% and 42.5% respectively. However, petrol cars still dominate the market, with sales rising by 7.7% compared to a 1.3% decline in diesel sales. Conventional powertrains still account for the majority of transactions, but their market share is shrinking as more buyers opt for electrified vehicles.
Superminis remain the most popular vehicle type, followed by the lower medium segment and dual-purpose vehicles. Executive, luxury saloon, and upper medium segments were the only ones to record declines in sales. In terms of colors, black remains the most popular choice, followed by grey and blue.
Industry experts are optimistic about the future of the used car market. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), highlighted the increased choice and affordability for used car buyers, especially in the electric vehicle segment. Online marketplace Carwow noted the growing consumer appetite for affordable EVs, calling for government incentives to boost the market further.
Overall, the strong performance of the used car market in the first quarter of 2024 bodes well for the rest of the year. With the economy improving and the shift towards electric vehicles gaining momentum, the outlook for the used car sector is positive. As new car sales face challenges, the used car market continues to show resilience and promise for the future.