Used car market still below pre-pandemic levels

Used car transactions are expected to surpass 7.1 million units this year, which represents a 4.4% increase on 2022.

However, this is still three per cent below the average pre-pandemic figure.

According to Cox Automotive, there will be nearly 1.9 million transactions in the third quarter of the year, falling to 1.6 million in the fourth quarter.

It is not expecting a fuller recovery in used car sales until next year.

Philip Nothard, insight and strategy director at Cox Automotive, said: “The global loss of 42 million new vehicles in production has permanently impacted the future composition of the used market.

“However, our analysis points to a steady improvement in the UK sector for this year, which can be partly attributed to production cycles moving back to near normality.

“It nevertheless remains a changing landscape and the impact of supply and demand on valuations in the used sector has become increasingly evident in recent months.”