Demand for used plug-in models surges despite used car market falling

Demand for used battery-electric and plug-in hybrid vehicles continued to grow in Q3, according to data from the SMMT.

The latest figures released today by the Society of Motor Manufacturers and Traders (SMMT) found that the number of used BEVs that changed hands during the period was the highest recorded in any quarter. Hybrid electric vehicle (HEV) transactions also increased by 20.3% to 40,157.

Reflecting recent trends in both the new and used markets, transactions also rose by 56.4% and 43.3% to 14,182 and 14,990 respectively.

Thanks to an ever-growing choice of new zero emission models coming on sale, for both new and used car buyers, the market share for all used plug-in vehicles increased to 1.4%, up from 0.9% the previous year. Petrol and diesel powertrains continued to dominate, however, comprising 96.4% of all transactions equivalent to 1,959,955 units, although demand for both declined, by -6.9% and -7.6% respectively.

This strong plug-in performance comes despite the UK’s used car market falling -6.2% in the third quarter of 2021. 2,034,342 vehicles changed hands, 134,257 less than in Q3 2020 when the re-opening of showrooms and easing of lockdown measures saw the market bounce back strongly.

Used car transactions declined in every month across the quarter, with July, August and September all falling, by -4.9%, -5.9% and -7.9% respectively. Overall, the period is down -2.0% on 2019 pre-pandemic, making it the weakest quarter three since 2015.

Mike Hawes, SMMT chief executive, said: “Despite the used car market declining in the third quarter, record sales earlier in the year, particularly in the second quarter, means the market remains up year to date. Given the circumstances, with the global pandemic causing a shortage of semiconductors needed to produce new vehicles, undermining the new car market, used transactions were always going to suffer too.

“This is particularly worrying as fleet renewal – of both new and used – is essential if we are to address air quality and carbon emissions concerns.”