Used car sales spike with rising demand for electric vehicles.

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【Summary】Growing demand for electric vehicles (EVs) has led to a surge in used car sales in the UK. The Society of Motor Manufacturers and Traders (SMMT) reported a 4.1% increase in used car transactions between April and June 2023 compared to the same period last year. Sales of used battery electric cars rose by 81.8%, capturing a market share of 1.7%. However, overall used car sales remain 9.9% below pre-pandemic levels. The SMMT attributes the growth to improved availability in the new car market.

FutureCar Staff Aug 14, 2023 10:01 AM PT

Used car sales spike with rising demand for electric vehicles.

According to figures from the Society of Motor Manufacturers and Traders (SMMT), there has been a surge in used car sales in the UK due to the growing demand for electric vehicles (EVs). Between April and June, a total of 1.83 million cars changed hands, representing a 4.1% increase compared to the same period in 2022. This follows a similar year-on-year growth in the previous three months. The SMMT attributes this growth to the sustained expansion of the new car market, which has led to improved availability of used cars.

One notable trend is the significant increase in sales of used battery electric cars, which rose by 81.8% year on year. These EVs now hold a market share of 1.7%, with 31,000 transactions recorded. Despite the overall rise in used car sales, the total volume remains 9.9% below pre-pandemic levels.

Mike Hawes, the chief executive of the SMMT, expressed his satisfaction with the growth of the new car sector and its positive impact on the demand for used cars, particularly electric vehicles. He emphasized the importance of a thriving new car market and the need for accessible and reliable charging infrastructure powered by affordable, green energy. Hawes believes that meeting the increasing demand for pre-owned EVs will contribute to achieving environmental goals.

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, commented on the strong performance of used car sales in 2023, particularly in the second quarter. He noted that as wait times for new cars have decreased, more people are selling their current vehicles to purchase fresh models. This has resulted in a steady supply of high-quality used cars entering the market, offering great deals for savvy motorists.

The Ford Fiesta emerged as the best-selling used car in the UK between April and June, with 75,000 transactions. Interestingly, the manufacturer recently ceased production of the Fiesta at its Cologne factory in Germany to create more space for the production of EVs.