Second-hand car sales drop due to lack of choiceon February 10, 2023 at 10:25 am

Sales of second-hand cars fell sharply last year as fewer used models came onto the market, industry figures show.

A shortage of parts driven by Covid meant fewer new cars were produced, and people hung on to their cars longer as they waited to upgrade.

Some 6.9 million used cars changed hands, down from 7.5 million in 2021, according to the Society of Motor Manufacturers and Traders (SMMT).

However, it said the situation was starting to ease.

The SMMT also said sales of second-hand electric vehicles had bucked the trend.

At the height of the pandemic, car dealerships were closed and production lines shut down.

Then, as the world began to open up a shortage of computer chips – which are commonly used in modern vehicles – caused further disruption.

That hit the new car market, where sales slumped to a 30-year low in 2022.

The shortage of vehicles fed through to the much larger second-hand market. As a result, used car prices soared in 2021 and have only just begun to stabilise.

According to car magazine Autotrader, the average price of a used Fiat Panda was £5,765 in January – up 18.7% compared to a year ago – while a Toyota Avensis cost £5,825 – up 17.9%.

However, the price of a second-hand Suzuki Vitara was £14,786 – down 9% – while a Skoda Yeti cost £9,893, down 9.4%.

More than six and a half million used cars changed hands last year. While that’s down on 2021, and still well below the pre-pandemic level, it’s still an impressive number.

Many people in this country, especially those who live in rural areas with limited public transport, need cars to get around.

Some say the recent wave of strikes has made them more reluctant to use public transport as well.

For those on lower incomes who need cheap transport, the supply shortage has been a real problem.

It has pushed up the prices of many popular models at a time when the cost of living generally has been rising fast.

Despite the overall slump in second-hand car sales last year, more used electric cars changed hands, the SMMT said.

A record 71,071 used pure electric vehicles found new owners – up 37.5% – while sales of second-hand hybrids and plug-in hybrids rose by 8.6% and 3.6%.

Electric vehicles only account for a small proportion of the used car market, but Mike Hawes, boss of the SMMT, said the uptake of used electrified vehicles “demonstrates a growing appetite for these models”.

“With new car registrations growth expected this year, more of the latest low and zero emission models should become available to second owners,” he said.

The most popular second-hand model sold in 2022 was the Ford Fiesta, followed by the Vauxhall Corsa and Volkswagen Golf, according to the SMMT.

The most popular colour was black, followed by blue and grey.

However, the group said some buyers had been more adventurous, with 4,461 pink, 6,708 turquoise and 18,658 bronze used vehicles changing hands during the year.