Used car market sees 4.3% growth, driven by record electric vehicle sales

The used car market grew by 4.3% from July to September, marking the seventh consecutive quarter of year-on-year growth, according to the latest data published by the Society of Motor Manufacturers and Traders (SMMT).

Approximately 1,965,811 vehicles changed hands, an increase of 81,651 transactions compared with the same period in 2023, partly driven by growth in the new car market.

Battery electric vehicles (BEVs) saw a record surge, with 53,423 used BEVs sold, reflecting a 57.0% increase and capturing their highest-ever market share at 2.7%, up from 1.8% in the previous year.

Plug-in hybrids and hybrids also saw gains, with sales rising by 29.0% and 35.8% respectively. Meanwhile, 1,123,387 petrol vehicles were sold, an increase of 5.7%, while 679,797 diesel vehicles, which represent 91.7% of the market, saw a decline of 3.9% in sales.

Superminis retained their popularity, with sales rising by 5.0% to 637,865 units, making up 32.4% of all transactions. Lower medium cars (up 5.5%) and dual-purpose cars (up 10.5%) followed, accounting for 27.1% and 15.8% of the market, respectively.

Together, these top three categories comprised 75.3% of all used car sales. In contrast, segments such as upper medium, executive, MPV, mini, and luxury saloon experienced declines.

In terms of colour, black remained the most popular choice, representing 21.2% of all transactions. Grey held second place, increasing by 7.9% to account for 17.6% of sales, followed by blue, which rose by 2.8% to make up 16.1% of the market. Silver was the only colour in the top ten to see a drop, slipping to fifth place.

From January to September, the used car market has shown growth every month, with total transactions up 6.0% year-on-year, amounting to nearly six million units (5,897,129) sold in the first nine months.

Mike Hawes, SMMT chief executive, commented: “Growth in the used car sector is good news and driven by an outstanding range of desirable and, increasingly, zero-emission vehicles to suit every budget. Maintaining this depends on a healthy new car market, particularly for EVs.

“Giving consumers the confidence to switch from their familiar petrol or diesel vehicles requires confidence and incentives. Otherwise, many would-be new car buyers will sit on their hands, leading to a diminishing market that will inevitably limit used car availability and affordability. This will be to the cost of motorists, the economy and the environment—making a review of support for the transition and the regulation intended to deliver it an urgent priority.”

James Wilson, COO of used car marketplace Motorway.co.uk, commented: “Used car sales continued to increase this quarter, with more stock hitting the market thanks to a buoyant new car market over the last nine months. Our online marketplace saw the same trend, with more cars listed in Q3 compared to the previous quarter, with vehicles selling for over 3% more than the market average. 

“Demand for used electric vehicles remains high from our dealer partners, with a 30% increase in sales through the Motorway platform in Q3, with drivers turning to the used market as a more affordable entry point. 

“It’s a positive quarter for the used car industry as a whole, and a step in the right direction for the used-EV market. There’s still lingering nervousness around charging infrastructure and battery health, but on the whole consumers and dealers are increasingly looking to the used market as the UK drives towards electric.” 

Ian Plummer, Auto Trader’s commercial director, added: “With the recent lacklustre performance in the new car market, it’s very positive to see such strong consumer appetite for used EVs. On our platform, demand has rocketed this year, especially among the ‘middle aged’ electric cars which on average are the same price, if not less than their petrol or diesel counterparts. They’re currently flying off forecourts 10 days faster than the rest of the used car market, which highlights just how vital a role affordable prices will play in the UK’s transition to electric.

“Consumer appetite for used cars hasn’t been limited to just electric this year. Despite the turbulent economic and political background, not to mention the Euros, Wimbledon, and the Olympics, the market remained as resilient in the last quarter as it has been throughout the year.

"While the industry currently faces a growing number of challenges, average prices remain buoyant, used cars are selling quickly, and as reflected in the additional circa 60 million visits to our platform this year, consumer demand has been remarkably robust. The closing months are typically the quietest, but based on the current performance, the market remains on track to be the biggest since before the pandemic."