UK used automotive gross sales shrank by practically 20% in Q2, regardless of a 57.1% improve in used electrical car gross sales over the identical interval.
The newest figures from the Society of Motor Producers and Merchants (SMMT) present that there have been 407,820 fewer transactions to a complete of 1,759,684 automobiles altering fingers.
Nonetheless, the SMMT has clarified that the size of the decline was artificially inflated by comparability with 2021 when the easing of Covid restrictions noticed the busiest second quarter since information started. By comparability, Q2 2022 was -13.5% behind pre-pandemic 2019.
The continued scarcity of semiconductors continued to influence new automotive market provide, with an inevitable knock-on impact on used transactions.
Declines have been recorded in every month, with falls in April, Could and June of -16.8%, -20.9% and -18.6% respectively. Consequently, the market is down -8.3% 12 months to this point on 2021, and -12.8% on pre-pandemic 2019.
Nonetheless, battery electrical car (BEV) gross sales rose 57.1% to succeed in 16,782 models, doubling market share to 1.0%, whereas plug-in hybrids held comparatively secure with 1.0% progress and 0.9% of the market.
Hybrids (HEVs), in the meantime, declined by -4.0% with 2.4% of the market. Consequently, used petrol and diesel autos remained dominant, totalling 1,682,280 models and accounting for 95.6% of gross sales.
Reflecting the brand new automotive market, the most well-liked section varieties have been supermini (31.4%), decrease medium (26.5%) and twin goal (14.7%). Black automobiles proved the most well-liked, accounting for a couple of in 5 (21.5%) gross sales, adopted by blue and gray. Pink automobiles proved the least standard total, comprising 1,135 models.
Mike Hawes, SMMT chief govt, stated: “It was inevitable that the squeeze on new automotive provide would filter by means of to the used market.
“Regardless of this, Britain’s used automotive consumers clearly have a rising urge for food for the newest low and 0 emission automobiles, and we want a thriving new automotive market to feed it.
“The following Prime Minister should create the circumstances to drive client confidence, particularly in EVs, to drive the fleet renewal needed to satisfy our decarbonisation targets.”
Customers are holding onto their autos for longer
Chris Knight, KPMG UK Automotive Accomplice, stated the statistics have been pushed by shoppers holding onto their automobiles for longer, leading to fewer used automotive transactions.
He stated: “Costs stay considerably greater than pre-pandemic as shoppers are prepared to pay a premium to keep away from having to attend for a car.
“There’s nevertheless proof that worth progress is cooling amidst a value of residing squeeze, and an increase in the price of driving.
“Shopper demand for used automobiles might effectively drop within the coming months, however the provide panorama is such that it’s unlikely that we see main worth corrections within the close to time period.”
Sue Robinson, chief govt of the Nationwide Franchised Sellers Affiliation (NFDA), stated the decline within the used automotive figures displays the power of the figures in 2021, the busiest quarter since information started.
She stated: “Franchised sellers proceed to see sturdy demand within the used automotive section pushed by a mix of client demand and an absence of provide of latest autos.
“Battery electrical autos elevated by 57.1%, however nonetheless represents a really small section of the market. Franchised sellers will proceed to advise prospects on the most effective automotive for his or her wants, notably within the face of business provide points and an growing value of residing.”
Robinson stated the NFDA expects used automotive values to stay sturdy as the availability of excellent high quality used automobiles are nonetheless decrease than regular.
She added: “Present new automotive volumes are proscribing the variety of part-exchange autos reaching the market that might usually assist provide vendor forecourts, and on the identical time some shoppers needing a automotive shortly are turning to the used automotive market to supply their subsequent car.”