UK used car sales dropped in the second quarter of 2022, with more than 407,000 fewer vehicles changing hands than in the same period last year.
The Society of Motor Manufacturers and Traders (SMMT) said this was “inevitable” due to the “squeeze” on new car supplies trickling down to the used car market, which had inflated used car prices.
“Prices remain significantly higher than pre-pandemic as consumers are willing to pay a premium to avoid having to wait,” said Chris Knight, automotive partner at KPMG.
Others in the car industry agree that less disposable income as a result of the cost-of-living crisis was also prompting owners to hold on to their cars for longer, instead of looking to upgrade.
This was portrayed within the latest figures, released today, which showed that between April and June, 1,759,684 used car transactions took place, down 18.8% (407,820) on the same period the year before. This was also 13.5% (274,552) down on Q2 of pre-pandemic 2019.
Declines were recorded in each month, with falls in April (16.8%), May (20.9%) and June (18.6%). Overall, 3,535,035 cars have been sold on the used market so far this year, down 8.3% on 2021 (3,855,259).
However, the SMMT says the scale of the decline is inflated due to the easing of lockdown restrictions in the same period last year, which resulted in the busiest second quarter since records began.
It wasn’t all doom and gloom, with battery-electric vehicles (BEVs) recording a 57.1% rise in sales (16,782), while plug-in hybrids held relatively stable with 1% growth to 15,633 sales. Hybrids, meanwhile, declined by 4% to 43,019 sales.
As expected, the main sales came in the form of used petrol and diesel vehicles, totalling 1,682,280 units and accounting for 95.6% of sales.
Mike Hawes, SMMT chief executive, said, “It was inevitable that the squeeze on new car supply would filter through to the used market.
“Despite this, Britain’s used car buyers clearly have a growing appetite for the latest low- and zero-emission cars, and we need a thriving new car market to feed it.”
Knight added: “Consumer demand for used cars may well drop in the coming months, but the supply landscape is such that it’s unlikely that we see major price corrections in the near term.”
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Err, have you seen the prices of used cars? Most people aren't stupid. Everybody can see prices falling already. Why would you buy now?
Thought plenty about replacing my current car but there'd be very little advantage to have. Cars have just plateaued or even worsened in many aspects. My 6 and 8 year old cars are as reliable, as fast, as economical and look as modern as their replacement, just compare a fiesta from 10 years ago to todays model, they even have the same engine.
In fact most new cars are worse, bigger, heavier, more complicated and worse of all many have an additional battery that does very little except add weight, cost and complexity.
No as I've said previously I'll buy a current model around 2024 to avoid all the GSR2 rubbish and that'll give me another 10 years of driving.