UK’s used car sales slow as new car market shows signs of recovery

We’re not buying as many used cars as we did in 2021, according to the numbers from the Society of Motor Manufacturers and Traders (SMMT). Figures released this morning point to a fall of over eight per cent in the last year. Yet, the number of used electric cars (EVs) continues to climb and a marginal increase in new car stocks suggests cautious recovery.

The much-talked-about supply chain issues concerning semiconductors and raw materials has been affecting new car production for some time. Even if you’re sick of hearing it, you get the domino effect, right?

With lower stocks of new cars, the used car market was buoyed by drivers looking to switch vehicles. However, some months on, used car stocks are low, without the churn from the top-down, and with some drivers deciding against changing their motor altogether, used car sales have slowed. The Ford Fiesta was the top selling used motor, with over 288,000 sales.

However, record demand for used EVs and a small increase in new car stock levels are the positive takeaways. Battery electric vehicles (BEVs) - possibly bolstered by lower prices - sold 37.5 per cent more than 2021 figures, hybrid sales rose over eight per cent and the share of plug-in hybrids grew 3.6 per cent. Meanwhile, December’s 0.8 per cent growth was the first rise in car transactions since February 2022. After ten months of decline, the car industry can breathe a sign of relief. Yet, to fully realise continued growth, Mike Hawes, SMMT boss, says there is still work to be done.

“While the market headlines are negative, and reflective of the squeeze on new car supply last year, record electrified vehicle uptake is a bright spot and demonstrates a growing appetite for these models. With new car registrations growth expected this year, more of the latest low and zero emission models should become available to second owners.

"Accelerating uptake is key and will be dependent on drivers being assured of a positive ownership experience. This means ensuring charging infrastructure keeps pace with demand as more new and used car buyers make the switch to zero emission motoring than ever before.”

Black, blue and grey were recorded as the top three most popular colours for used car buyers - with grey topping the charts in new car sales. Perhaps that’s a reflection on how bruised we all feel after enduring such economic stability.