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WHILE new car sales stall at least the used market appears to be bucking the trend, rising almost 1% in Q3 following nine straight quarters of decline.

The latest figures released by the Society of Motor Manufacturers and Traders (SMMT) show 2,076,382 transactions took place between July and September, 18,925 more than the same period in 2018, up 0.9%.

Demand for diesel models was up 1.4% in the quarter with 858,442 changing hands, while petrol sales were flat with a slight drop of -0.2%. Plug-in electric and hybrid models showed a solid increase of 13.0%, totalling 37,589 units and increasing their share of sales to 1.8% from 1.6% in Q3 2018.

Superminis remained the most popular segment, reflecting the trend in the new car market, with 684,929 changing hands, accounting for 33.0% of transactions. The lower medium and upper medium segments were the next most popular, with 27.0% and 11.7% shares respectively. Meanwhile, the dual purpose segment showed the largest percentage growth (15.2%) with 11.6% market share.

The stronger Q3 performance wasn’t quite enough to offset declines in the previous two quarters, with 51,785 fewer transactions in the first nine months of the year and the market down -0.8%. Despite the recent weaker demand, at 6,130,762 units, the market remains at a relatively high level.

Mike Hawes, SMMT Chief Executive, said: “This growth, following a prolonged period of decline, is encouraging and it’s great to see a growing appetite for plug-in and hybrid models as they start to filter down to the used market.

“However, ongoing economic uncertainty and growing confusion over local clean air zones make it difficult to predict the future. To make meaningful environmental gains, we need to get more of the latest, lowest emitting cars on to our roads replacing older ones quickly.

“That means delivering the right conditions and policies to give new and used buyers confidence to invest in the vehicles that best suit their driving needs and budgets.”

James Fairclough, Chief Executive at AA Cars said that the used sales figures show buyers are being strategic, and seizing on the wide range – and quality – of second-hand cars currently for sale.

He added: “Supply is healthy and prices are often very competitive, with many dealer forecourts bristling with nearly-new models – which can offer strong value and are proving particularly popular.

“New research from AA Cars confirms this picture, revealing that 74% of motorists said the last car they purchased was a used vehicle. Meanwhile, only 26% of respondents opted for a brand new car.

“Dealerships which remain agile in their sourcing of stock and provide versatile solutions online, and on the forecourts, will be the best placed to thrive if the current flurry of customer activity eases.”

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