UK’s used car sales fell 8.5% last year as dealers struggled to stock forecourts

Used car sales fell 8.5 percent in the UK last year despite huge demand for second-hand engines, new figures show.

The Society of Motor Manufacturers and Traders (SMMT) said only 6.9 million vehicles will have changed hands in 2022, up from 7.5 million in the previous 12 months.

Limited production of new vehicles due to parts supply issues during the hangover of the pandemic has led to record demand for used cars, which in turn has driven prices to record levels.

But the trade body said the same restrictions on new car production had a knock-on effect on used car dealers unable to restock their showrooms and gas stations with vehicles.

The Ford Fiesta, the most used car on Britain’s roads with around 1.5 million units registered today, was the most bought and sold second-hand model, with 288,639 changes of ownership last year.

The Vauxhall Corsa was second in the list with 229,454 transactions ahead of the VW Golf (216,227).

Used battery electric cars bucked the trend, with a record 71,071 units sold by 2022, the SMMT said.

That’s a 37.5 percent year-over-year increase as more pure electric vehicles enter the second-hand market, though it’s still half the number of used hybrids changing hands.

The Ford Fiesta changed hands with 288,639 last year, ahead of the Vauxhall Corsa and VW Golf

Of all used cars sold, 3.9 million are petrols and almost 2.7 million are diesels.

While many will point to the cost-of-living crisis limiting spending on major card purchases such as a replacement car, the SMMT’s data shows total transactions rose 0.8 percent in December compared to the same month in 2021 –despite the fact that the last month of the year is traditionally the quietest month for dealers.

This was the first monthly increase since February 2022 and represents the relief of parts supply issues – namely the shortage of semiconductor chips – that have paralyzed the new car market since 2020.

According to the Society of Motor Manufacturers and Traders, only 6.9 million vehicles will have changed hands in 2022, up from 7.5 million in the previous 12 months

The trade body said new restrictions on car production had a knock-on effect on used car dealers unable to restock their showrooms and service stations with vehicles

SMMT chief executive Mike Hawes said: “While the headlines are negative and reflective of pressure on new car supply last year, record adoption of electrified vehicles is a bright spot and shows growing interest in these models.

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

“Accelerating adoption is key and will depend on drivers being assured of a positive owner experience.

“This means ensuring that charging infrastructure keeps pace with demand as more new and used car buyers make the transition to zero-emissions driving than ever before.”

The total of 6.9 million used cars changing hands in 2022 was the second lowest annual number since 2012.

In 2020, only 6.8 million were sold during the coronavirus lockdowns.

Used battery electric cars bucked the trend, with a record 71,071 cars sold by 2022. However, this is still only half the number of used hybrids changing hands and significantly lower than 3.9 million petrol and 2 .7 million diesel cars

Ian Plummer, commercial director of online car marketplace Auto Trader, said: “Ongoing supply issues held back used car sales from an exceptional performance in 2021, but the market has great momentum and last month we saw a record 80 million visits to our site – nearly 10 million more than a year ago.

‘For most motorists, the car is a fundamental need, especially given the current disruption of public transport.’

Dr. Tony Tong, head of automotive at eBay UK, said the figures indicate drivers are keeping their cars longer as wallets tighten and consumers look for cost savings.

‘Our latest research shows that a growing number of Britons are willing to roll up their sleeves and roll up their sleeves by doing DIY jobs to repair their car themselves and opting for used parts in instead of new ones.

‘According to our research, half (50 per cent) of UK consumers say they would change their car’s windscreen wipers themselves, while 37 per cent would change the interior and exterior light bulbs.’