Used car market down 18.8 per cent despite electric car sales boost

Sarah Tooze, Consumer Editor
Wed, 10 Aug 2022

• Used car sales fell by 18.8 per cent in Q2 2022, with declines in April, May and June
• Used car prices also softening, according to the heycar Used Car Price Index
• EV sales buck the trend, doubling their market share to one per cent

Used car sales fell by 18.8 per cent during the second quarter of 2022, with 1,759,684 cars changing hands, according to the latest figures by the Society of Motor Manufacturers and Traders (SMMT).

In total, 407,820 fewer vehicles were sold compared with the same period last year, although the SMMT points out that the scale of the decline has been “artificially inflated” by comparison with 2021 when the easing of Covid restrictions saw the busiest second quarter since records began. By comparison, Q2 2022 was 13.5 per cent behind pre-pandemic 2019.

Even so, declines were recorded each month, with falls in April, May and June of 16.8 per cent, 20.9 per cent and 18.6 per cent respectively, with the used car market feeling the knock-on effects of the semiconductor shortage, which is impacting new car supply, and a drop in demand as the cost of living crisis hits. 

Reflecting the drop in demand, online used car marketplace heycar is reporting falling used car prices from their previous record highs.

Used car prices continue to drop 

The average asking price of a three-year-old car in July was £19,899.50, according to the heycar Used Car Price Index. That's 0.59 per cent lower than the month before and 8.20 per cent down on January 2022.

Older used cars have seen a bigger drop with the average asking price of a five-year-old car on heycar being £15,946.65 in July, 11.53 per cent lower than it was at the start of 2022.

However, average used car prices on heycar are still ahead of this time last year with a three-year-old car’s price up 6.67 per cent and a five-year-old car’s up 14.51 per cent.

Used electric vehicles double their market share

Sales of battery electric vehicle (BEV) rose 57.1 per cent in quarter two 2022, according to the SMMT.

They reached 16,782 cars, doubling BEV's market share to one per cent. Used petrol and diesel
vehicles remained dominant, totalling 1,682,280 cars and accounting for 95.6 per cent of sales.

Reflecting the new car market, the most popular segment types were supermini (31.4 per cent), lower medium (26.5 per cent) and dual purpose (14.7 per cent).

Black cars proved the most popular, accounting for more than one in five (21.5 per cent) sales, followed by blue and grey. Pink cars proved the least popular overall, comprising 1,135 cars.

Ford Transit Custom is most popular used vehicle 

The Ford Transit Custom has topped the list of heycar’s most popular models so far in 2022, appealing to tradespeople and delivery drivers, as well as consumers who are downsizing to one vehicle or looking for a versatile van-based MPV. The Transit Custom is available as a panel van or as a nine-seater Kombi family vehicle.

heycar has seen a 26.8 per cent increase in demand for the Transit Custom in 2022 compared to
the same period last year, while overall there has been a 60.8 per cent increase in demand for vans in the second quarter of 2022 compared to the second quarter of 2021.

This time last year it was one of the UK’s most popular SUVs, the Nissan Qashqai, which was the favourite among heycar’s used car buyers.

However, in 2022 the Transit Custom has beaten the Qashqai as the most popular vehicle for used car buyers. The Transit Custom also comes out on top of all vehicles with a 21- and 22-plate.

Surge in home deliveries 

The Transit Custom’s rise is part of an overall growth in demand for used vans at heycar, which has been fuelled by the surge in home deliveries since the start of the Covid-19 pandemic.

This has seen the Volkswagen Transporter also feature in both lists - second behind the Transit Custom for vehicles registered from 2021 and 2022 and the tenth most popular used vehicle overall.

Oliver Rowe, Ford product affairs manager, said: “The Ford Transit Custom was the UK’s top-selling vehicle among both passenger and commercial vehicles last year, and remains so 2022 to date.

“So we’re delighted to see it is also proving popular with used vehicle buyers on heycar this year.

“The army of Ford Transit drivers, and the companies employing them, depend on their vans - just as homes, businesses and other customers depend on their deliveries.”

Ask HJ

Why are used automatic cars more expensive to buy?

Why are small used car automatics so much more expensive than the equivalent manual models?

Automatic cars are more complex and seen as more premium than manual cars, so they're more expensive to buy (both new and secondhand). Small used automatics are rarer than manuals but also in high demand (particularly with older drivers, or younger ones with an auto-only licence). That pushes up prices.

Answered by Andrew Brady

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Ask HJ

Can you recommend a family car?

I don't drive a lot, say less than 5,000 miles per year, and have a budget around £10,000. The car is mainly for social use, I drive at most twice per week, except holiday. I used to have an Audi A3 and I want a family car with slightly more space.

If you can find one with the 1.4 TSI petrol engine, a Skoda Octavia Estate might be a good option. It'll be a very practical choice with low running costs that'll be fine with short journeys and occasional use. Even the hatchback version could be worth a look as it'll be bigger than your A3 was. A Honda Civic could be a good alternative.

Answered by Andrew Brady

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