THE used car market fell for the second consecutive quarter this year, declining 12.2% over the three months of July to September, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Some 1,785,447 vehicles changed hands, the first time that quarter three transactions have dipped below two million since 2015, as semiconductor shortages impacted supply of stock. In the year to date, sales are now down -9.7% to 5,319,482.
Used battery electric vehicle (BEV) sales bucked the trend, however, with Q3 reflecting growth in the electrified new car market as activity rose 44.1% to 16,775 transactions, adding up to 48,032 in the year to date.
The market for used hybrid electric vehicles (HEVs) also grew, up 2.5% in the quarter with 41,479 cars finding new owners, taking the yearly total so far to 119,722. Plug-in hybrid (PHEV) transactions, meanwhile, fell -5.8% to 13,899 in Q3, though they remain up 7.1% since January at 44,724.
It means that, driven by an ever-growing choice of zero emission capable models reaching the used car arena, combined transactions for electrified vehicles reached 4.0% market share in the third quarter, up from 3.3% a year before. Used petrol and diesel vehicle continued to dominate, however, totalling 1,708,299 transactions in Q3 with petrol taking the lion’s share of the total market at 57.1%.
Sales declined across all segments, but superminis maintained their popularity, with a 32.2% market share, followed by lower medium (26.4%), while carrying the smallest decrease (0.8%) was dual purpose in third (14.7%). Collectively these three segments account for more than seven in 10 (73.3%) of all used car purchases in the quarter. Meanwhile, MPV transactions fell the most, down 18.5%, followed by minis (18.2%) and upper mediums (17.1%).
Black continued to prove the most popular used car colour, accounting for a fifth (21.4%) of the market, ahead of grey which moved into second place – up from fourth this time last year – while blue remained in third. Demand for silver vehicles fell by -18.0%, the most for any colour, as it slipped from second to the fourth best seller this quarter.
The South East region, excluding London, saw the most activity in Q3 with 265,755 used cars changing hands. In second was the North West, with 196,560 transactions, followed by the West Midlands in third at 178,824. Northern Ireland saw the least activity in the quarter, with 56,563 used cars sold, followed by the North East at 72,181.
James Fairclough, Chief Executuve of AA Cars, said: “The used car market began 2022 on a roll, with soaring demand and sales, but things have cooled significantly since then. Disappointing though these latest sales numbers are, it’s worth remembering that the headline figure had a lot to live up to – it’s a comparison with the surge in sales recorded in the post-lockdown third quarter of 2021.
“Nevertheless a couple of factors are now holding back used car sales. Ironically the first is something that boosted second-hand sales at the start of the year – problems in the supply of new cars.
“12.6% fewer new cars rolled off UK production lines in the first nine months of the year than did during the same period last year, and with global production also off the pace, the number of nearly new cars now coming onto the second-hand market is short of where it should be.
“The weakening economy is also taking its toll. As consumer confidence falls, double-digit inflation is eating into people’s disposable incomes and their willingness to buy big ticket items like a car.
“While the second-hand car market typically performs better than the new car market when times are tough – thanks to the wide choice and compelling value it offers – rising interest rates and darkening economic clouds have led some would-be buyers to hold off.
“One bright spot is the jump in the number of Electric Vehicles coming onto the used market for the first time. High petrol and diesel prices have prompted thousands of drivers to consider going electric this year; but with brand new electric models costing significantly more than conventionally fuelled rivals, improved availability of second-hand EVs will give the used market a welcome boost in coming months.
“If you’re contemplating buying a used vehicle, it’s always wise to choose one that has had an independent pre-sale inspection, to give yourself peace of mind that there are no hidden faults which could cost you money down the line.”
Sarah Tooze, Consumer Editor at heycar, added: “Used car values are not as high as they were in 2021 with the average asking price of a three-year-old car down 2.39% year-on-year’’ and that the most popular three-year-old car on heycar for Q3 was the Ford Transit Custom, closely followed by the Ford Ranger.
“Interestingly despite the cost of living crisis, consumers are still looking to invest in the luxury market as the most popular car in the five-year-old category was a Mercedes Benz C Class and secondary to that was the Range Rover Evoque. This is because luxury vehicles rise in popularity as they get older due to them being at a more desirable price point. Three-year-old luxury vehicles are still, for the most part, out of reach for the average motorist, meaning that prices stay higher for longer.”
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