Used car sales reached 7.4m in 2013, the highest amount recorded since 2006, according to figures released by British Car Auctions (BCA).
4.3m were sold through dealers, 2.8m through private sales with the remainder going through either auctions or other means.
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At the same time, the average price of a used car rose from £5,352 in 2012, to £5,764 in 2013. This growth came mostly from dealer sales, where the average price grew £688, to £7,660. The average value of a car sold privately dropped by £431 to £2,465.
The rise in volume combined with the rise in values meant that the used car market reached an all-time high value of £42.7bn. BCA said this was £6bn more than the new car market was worth.
According to Peter Cooke, emeritus professor at the Centre for Automotive Management in the University Of Buckingham Business School, the improving economy and a better selection of ‘younger’ used cars had helped to stimulate demand.
Sales of cars in the up to five year old category increased 6.5% year-on-year in 2013, which was a faster growth than the total market growth, which was grew 4.2%, year-on-year.
Despite this, the long-term impact of the fall in new car sales during the recession meant that the average age of a vehicle in the UK grew to 7.7 years old, the highest number in 30 years.
2013 saw car sales begin to recover from the recession, and a combination of this, along with owners running their existing cars for longer meant that the number of cars on the road grew by 400,000.
Hatchbacks market share in 2013 was 44%, followed by saloons at 19%. Estates had a 12% market share, MPVs 8% and sports cars made up 6% of the market in 2013.
BCA also conducted a survey of 4,000 car owners in the UK to identify their priorities and experiences in buying cars.
Among the results, 12% said they would ‘certainly’ think about buying a new car rather than a used car for their next purchase if a low or 0% interest loan was on offer at the time, with a further 23% saying it was ‘quite likely’ they would be interested.
When asked how they thought technology might affect motoring over the next five years’, approximately half of respondents said they felt cars would become more fuel efficient with better fiel consumption and that electric cars would become more commonplace. A third said technology would improve due to safety improvements such as automatic braking systems, while 29% said they though drivers would become more dependent on visual and audio aids.
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