Used car sales rose by 11.5% in 2021 from 2020’s levels as computer chip shortages hit the production of new cars.
The Society of Motor Manufacturers and Traders (SMMT) reported that 7.53mln used cars changed hands in the UK last year, although the used car market is still 5.5% down on the five-year pre-pandemic average.
The fourth quarter saw the number of used cars sold fall by 3.1% to 1.64mln from 1.69mln in the same quarter of 2020.
Petrol-fuelled cars remain the most popular purchases, with transactions up 10.7% in 2021 from 2020’s levels at 4.23mln while purchases of diesel-powered vehicles rose 9.8% to 3.05mln.
It is clear to see which way the wind is blowing in the market, however, with sales of hybrid (internal combustion engine/electric) vehicles up 50.6% to 134,653, while sales of plug-in hybrids rose 77.1% to 54,115. Sales of purely electric vehicles rose 119.1% to 40,228, the SMMT reported.
“Annual demand for battery-electric (BEV) and plug-in hybrid electric (PHEVs) vehicles hit record levels, growing by 119.2% and 75.6% to 40,228 and 56,861 transactions respectively. Hybrid electric vehicle (HEV) transactions also rose by 50.3% to 137,639, a new high. Growth was driven by an increasing number of ultra-low and zero-emission models filtering through to second owners and, combined, these vehicles represented 3.1% of the market,” the SMMT said.
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Mike Hawes, the chief executive of the SMMT, said it was good to see the used car market return to growth, even if sales have not returned to pre-pandemic levels.
“With the global shortage of semiconductors set to ease later this year, releasing the squeeze on new car supply, we expect more of the latest, cleanest and zero-emission models to become available for second owners. The demand for personal mobility has undoubtedly increased during the pandemic, so it’s vital we have healthy new car sales to drive fleet renewal and the used car market if we are to improve air quality and address climate change,” he said.