Dealers feeling the pressure of a volatile new car sales market will take heart from new figures showing that the used side of their operations is still returning strong results.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that the UK’s used car market grew by 5.5% to 7,643,180 transactions in 2024, recording eight successive quarters of continuous growth.
Throughout the year 400,488 more vehicles changes hands compared to in 2023, fuelled by more availability of stock and a resultant wider choice for buyers. Transactions rose in every month in 2024, as they did in 2023, with Q4 last year increasing by 4.0% to 1,746,051 units.
A highlight of the latest figures was continuing soaring demand for used battery electric cars (BEVs) – sales of these vehicles rose 57.4% to a record 188,382 units to achieve a record market share, at 2.5% up from 1.7% in 2023 and 13 times larger than in 2019.
Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also grew, up 32.2% to 92,120 units and 39.3% to 306,114 units respectively. Full EVs remain the fourth most popular choice among used car buyers, petrol topping the chart followed by diesel and hybrid.
Industry observers reacted positively to the figures, Philip Nothard, Insight Director at vehicle marketing specialist Cox Automotive, describing the results as a positive sign of steady recovery for the UK’s used car market.
“This growth inspires optimism amid ongoing challenges in the wider automotive sector – with supply constraints and consumer confidence pressures still looming in 2025, any further gains will serve as a testament to the resilience of the secondhand market,” Nothard said.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), commented that the used car market had demonstrated remarkable resilience throughout 2024. “This growth comes amid the new car market seeing four consecutive months of contraction, suggesting a potential shift in consumer preference toward the used market,” she added.
Robinson said that it was encouraging to see used EVs achieve a record market share and continue their upward trend; “As the ZEV mandate quota increases to 28% this year, used EVs will play a crucial role in supporting consumers through the transition to electric vehicles.”
John Cassidy, Managing Director of Sales at Close Brothers Motor Finance, commented that the strength of the used market would be good news for consumers who have increasing levels of choice.
“As economic uncertainty has been the initial theme of 2025, this is going to be even more important for consumers who are increasingly likely to turn to the secondhand market,” Cassidy said.
“The large rise in electric vehicles indicates demand is improving, which will be good news for the Government who are heavily relying on widespread adoption in order to make sure their zero emission vehicle (ZEV) mandate targets are attainable.”
Cassidy warned, however, that upcoming changes to taxation planned by the Government could stifle the growth in EV sales. “The used market relies heavily on strong new car sales in order for a strong range of stock to filter into the secondhand market, and removing incentives such as the vehicle excise duty exemption for EVs could act as a significant barrier to the Government’s plans,” he said.
“Adoption so far (of EVs) has stemmed mostly from fleets, and further incentives, combined with better infrastructure, will be needed to encourage new car buyers to make the change,” Cassidy added.
The top 10 most popular used cars listing continued to replicate the new car sales charts of around four years ago, with the Ford Fiesta continuing to head the list with more than 50,000 sales more than the second-placed Vauxhall Corsa, the VW Golf holding third.
