Lack of used cars drives second-hand sales lower

1 year ago 33
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A car showroomImage source, Getty Images

Sales of second-hand cars fell sharply last year as fewer used models came onto the market, industry figures show.

A shortage of parts driven by Covid meant fewer new cars were produced, and people hung on to their cars longer as they waited to upgrade.

Some 6.9 million used cars changed hands, down from 7.5 million in 2021, according to the Society of Motor Manufacturers and Traders (SMMT).

However, it said the problem was starting to ease.

The SMMT also said sales of second-hand electric vehicles had bucked the trend.

At the height of the pandemic, car dealerships were closed and production lines shut down.

Then, as the world began to open up a shortage of computer chips - which are commonly used in modern vehicles - caused further disruption.

That hit the new car market, where sales slumped to a 30-year low in 2022.

The shortage of vehicles fed through to the much larger second-hand market. As a result, used car prices soared in 2021 and have only just have begun to stabilise.

According to car magazine Autotrader, the average price of a used Fiat Panda was £5,765 in January - up 18.7% compared to a year ago - while a Toyota Avensis cost £5,825 - up 17.9%.

However, the price of a second-hand Suzuki Vitara was £14,786 - down 9% - while a Skoda Yeti cost £9,893, down 9.4%.

'Growing appetite'

Despite the overall slump in second-hand car sales last year, more used electric cars changed hands, the SMMT said.

A record 71,071 used pure electric vehicles found new owners - up 37.5% - while sales of second-hand hybrids and plug-in hybrids rose by 8.6% and 3.6%.

Electric vehicles only account for a small proportion of the used car market, but Mike Hawes, boss of the SMMT, said the uptake of used electrified vehicles "demonstrates a growing appetite for these models".

"With new car registrations growth expected this year, more of the latest low and zero emission models should become available to second owners," he said.

The most popular second-hand model sold in 2022 was the Ford Fiesta, followed by the Vauxhall Corsa and Volkswagen Golf, according to the SMMT.

The most popular colour was black, followed by blue and grey.

However, the group said some buyers had been more adventurous, with 4,461 pink, 6,708 turquoise and 18,658 bronze used vehicles changing hands during the year.

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