Used car market grows with strong electric and hybrid sales

The UK’s used car market grew by 5.1% in 2023, with 7.24 million vehicles changing hands as an improving new car market re-energised supply.   

The new figures, published today by the Society of Motor Manufacturers and Traders (SMMT), show sales of used battery electric vehicles (BEVs) reached their highest number ever, rising 66.7% from 71,071 used BEVs in 2022 to a record 118,973 units last year, and a 1.6% share of the overall market, up from 0.7% in 2022.

The uplift is in line with growth in the new car sector, said the SMMT, and demonstrates keen demand for zero emission motoring in what it described as a more affordable price bracket.

Sales of hybrid electric and plug-in hybrid electric cars were also strong, up by 40% and 25.1% respectively. Collectively, electrified vehicles represented 5.6% of the market – up from 4% in 2022.

Diesel and petrol, however, remained the most dominant fuel types, with a total of 6,827,466 units changing hands – 94.3% of the overall market.

“The maturing used electric market may still be in its infancy, but last year saw a definite growth spurt,” said Ian Plummer, commercial director at Auto Trader.

“Significantly softened prices, greater availability and more choice has proven a compelling combination for car buyers; demand on our marketplace surged 50% on 2022, the share of enquiries almost doubled, and used EVs sold five days faster than any other fuel type.

“With many second-hand models now at price parity with their traditionally fuelled counterparts, along with lower running costs, the switch to electric has never been a more attractive prospect.

“The used EV market will play a vital role in driving mass adoption of electric cars, but the government must do more to encourage car buyers to switch; building battery confidence, providing fairer charging costs, and introducing more financial incentives, including removing VAT on new and used EVs, will be essential.”

Superminis once again proved the most popular used car body type, accounting for one in three (32.1%) sales in the year.

They were followed closely by cars in the lower medium segment, which took 26.6% of the market, and dual-purpose vehicles (15.2%). The smallest volume segment was luxury saloons, representing just 0.5% of transactions.

Mike Hawes, the SMMT’s chief executive, said: “A healthy new car market is key to driving choice in the used sector and it’s great to see record numbers of second and third owners benefitting from the growing availability of electric vehicles.

“The demand is there, but to sustain it we must enable every motorist to make the switch.

“The upcoming Budget is a prime opportunity for Government to do just that – halving VAT on new EVs, while making public charging as easy and affordable as plugging in at home, would ensure a faster and fairer transition for all, giving the UK a green economic boost.”

Bucking the grey trend in the new market, black cars were the most popular used purchases, with more than 1.5 million buyers (21.4%) choosing the colour.

Grey, however, increased its ranking, displacing blue to take second place.

At the niche end of the spectrum, 4,870 buyers opted for pink, while 4,686 cream cars found new owners, and maroon represented 4,585 transactions.

Plummer said: “Against an uncertain economic and political backdrop last year, the used car market again showed its resilience, with overall demand remaining exceptionally robust, reflected in the 110 million additional visits to Auto Trader.

“There’s no doubt the months ahead will have their challenges, not least the ongoing squeeze in supply, but the used car market has started the new year with some real momentum behind it, with visits to our marketplace reaching an all-time high in January.

“With car buyer sentiment and confidence remaining positive, I fully expect 2024 to be another robust year for demand and transactions.”