Used car sales rise as demand for electric vehicles increases

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【Summary】Demand for electric vehicles (EVs) has led to a surge in used car sales in the UK, with 1.83 million cars changing hands between April and June, a 4.1% increase from the same period in 2022. Sales of used battery electric cars increased by 81.8% year on year, capturing a market share of 1.7%. However, overall used car sales remain 9.9% below pre-pandemic levels.

FutureCar Staff Aug 16, 2023 10:31 AM PT

Used car sales rise as demand for electric vehicles increases

The growing demand for electric vehicles (EVs) has resulted in a significant increase in used car sales, according to recent figures. The Society of Motor Manufacturers and Traders (SMMT) reported that 1.83 million cars were sold in the UK between April and June, representing a 4.1% rise compared to the same period in 2022. This follows a similar year-on-year growth in the previous three months. The SMMT attributes this increase to the sustained growth in the new car market, which has improved availability.

One notable trend is the surge in sales of used battery electric cars, which saw an 81.8% increase compared to the previous year. These electric vehicles now hold a 1.7% market share, with 31,000 transactions recorded. However, despite the overall rise in used car sales, the total number of transactions remains 9.9% below pre-pandemic levels.

SMMT chief executive Mike Hawes commented on the positive impact of the new car sector on the demand for used cars, particularly electric vehicles. He emphasized the importance of a thriving new car market and the need for accessible, reliable charging infrastructure powered by affordable, green energy to meet the growing appetite for pre-owned EVs. Hawes believes this will enable more people to drive zero-emission vehicles at a price point that suits them, contributing to the achievement of environmental goals.

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, highlighted the continued strength of used car sales in 2023. He noted that as wait times for new cars decrease, more individuals are choosing to sell their current vehicles in order to purchase newly manufactured ones. This has resulted in a steady supply of high-quality used cars entering the market, offering great deals for savvy motorists.

In terms of specific models, the Ford Fiesta emerged as the best-selling used car in the UK between April and June, with 75,000 transactions. However, the manufacturer recently ceased production of the Fiesta at its factory in Cologne, Germany, as the site undergoes modifications to accommodate the increased production of EVs.