Used car market geared up for second quarter surge

The UK’s used car market fell 8.9% in the first quarter of 2021, but experts are predicting a huge increase on 2020 figures in the second quarter.

According to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT), some 1,687,755 transactions took place, with the overall decline driven by large falls in January and February, of 27.1% and 19.4% respectively, as lockdown measures depressed demand and again closed car showrooms nationwide.

March saw the market show signs of recovery with a 32.2% year-on-year rise, amounting to 638,570 cars changing hands, although this compares with a weak March 2020 when the UK entered its first lockdown partway through the month. Compared with 2019, March was still down, 8.4%, and quarter one by 16.5% or 332,389 fewer transactions.

Among the turbulence, demand for used battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicles (HEV) remained strong. Buyers were keen to purchase pre-owned ultra-low and zero emissions cars, helped by increased availability and more models available. HEV transactions rose 16.6% to 27,694 units while PHEVs saw a 32.1% uplift to 10,534 units, and BEVs surged 48.3% to 6,564 sales.

However, the combined number of plug-in vehicles traded still represented only one per cent of the market,

Mike Hawes, SMMT chief executive, said: “These figures lay bare the turbulent impact of coronavirus lockdowns on the used car market and, while March’s performance suggests there is some pent-up demand, this is against a weak month last year, so its true extent remains to be seen.

“The second quarter will see significant growth as last year’s April and May markets were severely limited by lockdown measures. It’s vital that the used market is rejuvenated to help sustain jobs and livelihoods, drive fleet renewal and support environmental progress. With car showrooms open again and the UK coming out of Covid restrictions, the sector can look forward with renewed optimism.”