Second-hand EV gross sales greater than doubled from final yr as new automotive paucity advantages old-car market
Second-hand car gross sales grew 5.2 % within the first three months of the yr in comparison with the identical interval final yr, however the electrical automotive enterprise greater than doubled — up 120 %.
Figures from the Society of Motor Producers and Merchants (SMMT) present that between January and March 2022, 1.77 million used vehicles had been bought – 86,500 greater than within the first quarter of 2021.
The most recent figures from Auto Dealer’s month-to-month used worth index present that used automotive costs had been up 32% in April 2022 in comparison with a yr in the past, though months of fast worth development has now stalled.
The figures for the primary quarter replicate the bizarre scenario of final yr’s gross sales. Figures for January and February had been greater (17% and seven%, respectively) as sellers had been compelled to shut showrooms in early 2021, however figures for March had been down 7% as March 2021 noticed a rise in transactions as Dealerships absolutely reopened.
AA Vehicles CEO James Fairclough commented: “The lack of the brand new automotive market has been the achieve of the second-hand market.
“The 2 components that mixed to drive down new automotive gross sales are additionally boosting the used market.
“There’s a shortfall within the provide of latest vehicles for the primary sale. The variety of new automobiles rolling off UK manufacturing traces within the first quarter of the yr fell by a 3rd in comparison with Q1 2021, and plenty of abroad crops are producing fewer vehicles than normal.
“In distinction, used vehicles have one apparent benefit – availability.
“However there are indicators that squeezing the price of dwelling helps to tilt issues in favor of used vehicles. Inflationary pressures and more and more bleak financial information are prompting many patrons to think twice about big-ticket purchases like vehicles. ,
He stated the potential financial savings between new and used vehicles was additionally stimulating curiosity in used EVs as patrons thought-about the advantages of environmental and operating prices within the face of rising gasoline prices.
what automotive? The used-car market will proceed to learn from provide points within the new automotive vary, stated Jim Holder, editorial director of the corporate, however warned that ultimately restricted provides will influence the used-car enterprise as nicely.
He commented: “With no finish to the semiconductor scarcity within the new automotive market, the used automotive market is predicted to take pleasure in one other robust quarter this yr, though the most recent information from SMMT reveals that the market Beginning to stabilize.
“In keeping with our newest analysis, used patrons stay probably the most energetic available in the market. Nonetheless, the used automotive inventory is inherently tied to the brand new automotive market, and supply delays in new automotive gross sales, particularly for electrical automobiles. , this might imply that issues like the marketplace for used electrical automobiles are usually not rising on the charge it must, posing an issue for the sector within the years to come back.”
Auto Dealer’s Ian Plummer additionally warned that the used automotive market, particularly for brand new fashions, would quickly really feel pressured by the brand new automotive vary.
He added: “If fewer new vehicles are rolling off the manufacturing line, it’s as a result of the variety of vehicles bought is decrease. Right now’s figures level to a slight decline in gross sales of older vehicles in comparison with pre-Covid ranges. The shortage of an extended provide chain implies that fleet operators and leasing corporations are hanging on to automobiles for longer durations, limiting the variety of older vehicles getting into the market.”
He stated that whereas new used vehicles — as much as three years previous — had been the weakest for it, gross sales of older fashions had been stronger, reflecting an oversupply of automobiles.
Mike Howes, chief government of SMMT, stated: “With the brand new automotive market being disrupted by ongoing international provide constraints, development within the used automotive market is welcome, if no more, particularly provided that we went into lockdown final yr. Had been.
“Gross sales of electrical vehicles are energizing the market, zero emission automobiles have began filtering to numerous customers to drive the most recent and greener automobiles.
“Whereas the used market has some technique to go earlier than we see the latest development in new EVs, a buoyant new automotive market will probably be important to serving to drive fleet renewals which might be important to the supply of carbon financial savings. Is.”