Used automobile sales continued to soar in the primary three months of 2024 with more stock than ever hitting the market due principally to recent automobile sales picking up.
First-quarter used automobile sales rose by 6.5% at 1,967,923 units – the strongest begin to a yr since pre-pandemic 2019, in accordance with the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
The rise marks 16 months of successive growth, reflecting recovering supply in the brand new automobile market which is in turn improving availability and selection of second-hand cars.
In reality, used automobile transactions have risen in every month of the yr to this point but, despite this, SMMT noted that the quarter’s transactions remain -2.6% below pre-Covid levels.
Increasing numbers of battery electric vehicles (BEVs) are also making their presence felt within the used sector, with Q1 sales up by greater than two thirds (71.0%) to 41,505 – posting a brand new record market share of two.1%.
This makes BEVs the fastest growing powertrain while hybrids (HEVs) also sold in greater volumes, (74,502) representing a 49.3% rise. Plug-in hybrids (PHEVs), too, grew in popularity, with sales up 42.5% to 22,065.
Conventional powertrains remained dominant within the quarter, with sales of petrol cars rising 7.7% to 1,130,396, while those of diesels fell by -1.3% to 697,718. Combined, these cars accounted for 92.9% of all transactions (1,828,114 units) with market share shrinking by just over two percentage points on Q1 2023 as more buyers move to electrified vehicles.
Superminis remained the preferred vehicle type, with 640,711 changing hands – a 7.2% increase. In second place, the lower medium segment grew by 9.2% and saw the most important volume gain at 45,301 units.
Rounding off the highest three, which stays unchanged on the identical period in 2023, dual purpose represented 16.0% of the market and recorded the most effective percentage growth with a ten.3% rise.
Together, these segments accounted for 3 quarters of all cars sold within the period.4 At the opposite end of the dimensions, executive, luxury saloon and upper medium were the one segments to record declines, down -3.5%, -2.0% and -0.5% respectively.
The highest three colors were unchanged from Q1 2023, with black taking pole position for the thirteenth quarter and equating to 21.3% of sales. Grey, the preferred recent automobile color, held second place but recorded the most important growth in the highest 10, up 10.7%, and blue retained third, with a 6.2% uplift in transactions. Gold and cream were the one colors in the highest 20 to say no, falling by -2.5% and -0.6% respectively.
Mike Hawes, SMMT chief executive, said: “A reinvigorated recent automobile market is delivering more selection and affordability for used automobile buyers and, increasingly, they’re selecting to go electric. To enable much more drivers to enjoy the advantages of zero emission motoring, ensuring each supply and demand stays robust is crucial.
“Incentivising recent EV uptake and investing in a chargepoint network that’s accessible, available and reasonably priced to all will drive the nation’s net zero transition.”
Alex Buttle, co-founder of used automobile marketplace Motorway.co.uk, said average sale prices on Motorway for cars under five years old increased by 2.5%. following an uncertain Q4 in 2023, when used-car prices declined.
“Used EV sales continued to perform well in Q1, with drivers trying to the used market as a substitute of latest, as a cheaper route into going electric. We still need the federal government to offer greater support for the transition to electric – from improved charging infrastructure and recent laws on a single charging app, to financial incentives for personal automobile buyers in addition to fleet users. Then we could really see used EV sales soar even further ahead this yr.”
Ian Plummer, industrial director, Auto Trader, said the general retail market was quick to shake off the standard festive dip, and for the reason that Latest 12 months, it had been tracking very robust levels of consumer demand, reflecting the newest SMMT figures.
“Not only did the quarter culminate in a record 89 million visits to our marketplace in March, but used cars sold on the fastest pace we’ve ever recorded, translating to an exceptionally positive begin to the yr. Based on what we’re seeing, the market’s carried some real momentum into Q2, with average sales up over 6% in April.
“The months ahead may hold some challenges, not least the continuing squeeze in supply, in addition to a turbulent economic and political backdrop, but I’ve every confidence the used automobile market will proceed to display its huge resilience. “
Richard Peberdy, UK head of automotive for KPMG, said: “After years of being inflated as a result of supply disruption, many models are seeing prices falling back as increased stock enters the used market and adjusts the availability and demand curve. A number of the largest price corrections are being seen within the used electric market – where price normalisation is happening because the market evolves from its infancy.”
This Article First Appeared At www.am-online.com
