The UK’s used car market dropped by 2.8% in the second quarter of 2019, marking the second consecutive quarter of decline.
This is according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), which revealed that 59,000 fewer vehicles were traded than the same quarter last year.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Sales for used cars have fallen in every month this year apart from March, when they rose 1.9% by year-on-year comparison. Poor sales in the North West, Scotland and the South East drove the decline, while all other regions experienced increases in demand. Cities topping the list for used car sales were London, Birmingham and Sheffield.
Demand for petrol and diesel models declined in the second quarter, down by 3.7% and 2.5% respectively. However, combined sales of the fuel types still made up 98.3% of the market. Meanwhile demand for hybrid, plug-in hybrid and pure electric cars continued to grow, up 24.8%, with 33,492 models changing hands. Of these alternatively fuelled vehicles (AFVs), pure electrics experienced the largest growth – up 32.8%, with hybrids also rising 25% to 29,321 units.
Reflecting trends in the new car market, superminis remained by far the most popular used buy, with 665,469 of these smaller cars finding new owners, while the dual purpose segment enjoyed the largest growth, up 9.1% to 227,197 units.
Mike Hawes, SMMT chief executive, said: “With the country still gripped by economic and political uncertainty it’s perhaps unsurprising to see the used car market slowing down. This means owners are often holding on to their cars for longer, delaying the widespread introduction of the latest, cleanest models which is not good for air quality. We need a boost to consumer confidence, something that a Brexit deal would deliver, to improve the fortunes of the industry and the wider economy.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIndustry Reaction
Sue Robinson, director of the NFDA, said: “The recent declines in new car sales, combined with fewer companies defleeting, have had a detrimental effect on the availability of part exchange vehicles. Going forward, dealers’ stock availability is expected to improve as more two and three year old second-hand cars return to dealerships.
“It is important to note that we are comparing this year’s results with an extremely robust market in 2018. Used and nearly new cars continue to be an important business area for franchised retailers.”
Seán Kemple, director of sales at Close Brothers Motor Finance, said: “The increase, once again, in used AFVs is significant. It is further indication of how mainstream these cars are becoming, and how they have the potential to drive car sales overall. Similarly, demand for small used cars is putting sales figures back on track and used diesels are holding strong in the forecourts.
James Fairclough, chief executive at AA Cars, added: “Two successive falls in used car sales is a disappointing result for the first half of 2019, but there is still plenty of time to reverse this trend. By and large, the used car market has proved resilient in the face of political uncertainty, and the modest 2.8% fall in sales offers some reassurance that it is holding steady on the whole.”
“As the availability of used electric and hybrid cars improves, increasing numbers of environmentally-conscious buyers are being tempted to see what’s on offer on dealers’ forecourts. The combination of strong demand and tight supply is helping these green cars retain their value well, and giving buyers an added incentive to seek them out.
