“UK’s Used Car Market Sees 7.2% Growth in Q2 2024, Driven by Surge in Electric Vehicle Sales”
The UK’s used car market is experiencing a significant boom, with a 7.2% growth in Q2 2024. This growth has been largely driven by the increasing popularity of electric vehicles (EVs), with used BEVs recording their highest-ever market share at 2.4%. Sales of EVs have soared by 52.6% compared to the same period last year, indicating a clear shift in consumer preferences towards more sustainable transportation options.
According to the Society of Motor Manufacturers and Trades (SMMT), the increase in used car transactions has been consistent across every month of 2024 so far, with the market now just -3.0% shy of pre-pandemic levels. This growth is not limited to EVs, as sales of plug-in hybrids and hybrids have also seen significant increases.
Despite the surge in EV sales, petrol- and diesel-powered cars still dominate the market, accounting for 92.4% of all vehicles. However, the increasing availability of second-hand EVs is making it more affordable for motorists to make the switch to electric.
The rise in second-hand EV sales has also been attributed to falling prices, with used EVs now cheaper than petrol or diesel equivalents. Average retail prices of EVs are around 8.5% cheaper at three years old, rising to 14% at four years old. This significant price drop has made EVs more accessible to a wider range of buyers.
However, challenges remain in the transition to electric vehicles. The ZEV mandate, which requires carmakers to have 22% of their sales be zero-emission models in 2024, is putting pressure on the industry. High upfront costs and concerns about charging infrastructure are still barriers for many consumers.
Despite these challenges, industry experts remain optimistic about the future of the used car market. The surge in BEV sales signals a significant shift in buyer preferences, and with the right incentives and infrastructure in place, the demand for EVs is expected to continue to grow.
As we look ahead to the second half of the year, it will be important to address supply chain issues and ensure a smooth transition to a more sustainable transportation future. The used car market is evolving rapidly, and staying ahead of these changes will be crucial for both consumers and industry stakeholders.