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Despite UK new car sales hitting a 30-year low in 2022, the used car market is gaining more and more momentum. At the end of 2023 alone, it grew 5.5% with almost 1.9 million units changing hands. And electric vehicles (EVs) are playing a major role, with sales soaring by 99.9% in Q3 of 2023, with a record 1.8% market share.

With more and more people turning to electric, and the government setting ambitious aims for all new cars to be zero emission by 2035, it’s important dealers know the latest information to guide their customers through the transition.

Used cars are on the up

The growth of the used car market is a trend we’ve noticed at Black Horse too. In December 2023, 6.1% of our used car business focused on EVs. Throughout 2023 this increase was evident month-on-month, rising fourfold by the end of the year. This indicates a robust surge in supply as the new car market recovers.1

PHEV and HEV markets also experiencing growth

Not only did battery electric vehicles increase their percentage market share of the used vehicles market in 2023, plug-in hybrids and hybrids also increased their market share. Together they make up 2.8% of the market.2 What’s more, according to data from Auto Trader, new electric cars bought in 2022 have lost 21% of their market value3 - good news if you want to buy second-hand in 2024.

“The used car market continues to grow strongly, with re-energised supply unlocking demand for pre-owned electric vehicles – the result being twice as many motorists switching to zero emission motoring in the quarter (Q3). Maintaining this momentum requires growth in the new car market, to boost supply to the used sector and cement this success. Equally important is the urgent need for charging infrastructure rollout, so that all drivers can have confidence in being able to charge whenever and wherever they need.” – Mike Hawas, SMMT Chief Executive

Black Horse launch new EV Hub

With demand steadily growing within the used car market, it’s important for lenders and dealers to work together to educate their customers. That’s why we’re launching a new EV Hub soon, which will share information around the safety and life of a used EV to help ease peoples’ worries around charging, running costs and battery life. It will act as an aid for dealers in their discussions with customers to help them make informed decisions.

“At Black Horse, we’re committed to sharing the potential of used EVs with dealers and customers. We’re taking steps to provide education to make EVs more easily accessible. We’re also reviewing our finance products to ensure we are giving dealers confidence to stock and consumers confidence to buy.”- Tim Smith, Head of Motor Finance.

1 & 2  https://www.smmt.co.uk/2023/11/used-bev-transactions-double-as-second-hand-market-goes-green/

3 https://www.driving.co.uk/car-clinic/will-electric-car-prices-go-down-in-2024/#:~:text=For%20those%20looking%20to%20buy,been%20tumbling%20all%20through%202023.