Demand for second-hand cars surges as lockdown restrictions tighten - data from AA Cars

• Demand for used cars has rocketed by 15% compared to last year, analysis of drivers’ search behaviour on AA Cars has revealed
• Interest in second-hand vehicles has been sustained since forecourts re-opened in June, when searches spiked above pre-pandemic levels
• Increased demand for used cars comes as sales of new cars fall, suggesting drivers are looking for lower prices and better value on the second-hand market

Demand for used cars is 15% higher than it was at this time last year, coinciding with a decline in sales of new cars, new data from AA Cars, the AA’s used car website, has revealed.

Drivers’ interest in used cars spiked to 9.1% above pre-pandemic levels when forecourts re-opened in June, but the new analysis shows that demand has continued to pick up since then. Searches on the AA Cars platform in September were on average 4% higher than they were in June — with some areas, such as Glasgow, seeing demand rise by almost a third (32.2%)[1].

AA Cars analysed searches made on its platform in September for used vehicles in 48 major UK towns and cities. Across the UK, demand was 15% higher than the level recorded in September 2019. In Crawley, the area with the biggest increase in demand, searches had doubled compared to last year.

Meanwhile sales of brand new cars fell by 4.4% in September compared to the same month in 2019[2]. September is typically a high point for sales as new registration plates are introduced, but this September saw the lowest number of new registrations in two decades, according to SMMT data.

The number of second-hand vehicles being bought or leased with car finance has increased, with the most recent figures from the Finance and Leasing Association showing a 2% rise in August compared to the same month in 2019. However, there was a 1% decline in financing for new cars in the same month[3].

It’s widely thought that Government guidance for people to avoid public transport where possible has led more Britons to consider buying a car. Government data shows car use hit 92% of normal levels during September, while use of National Rail only reached 40% of normal journeys[4].

Forecourts reopened at the beginning of June in England, and at the end of June in Scotland and Wales. AA Cars’ analysis, comparing June with September, shows that the demand since the re-opening has been sustained — and even increased in many areas.

Top 10 areas with the biggest increase in searches from September 2019 to September 2020[1]

James Fairclough, CEO of AA Cars comments: “The sustained increase in demand since the summer is positive news for the used car market, which endured a big decline in sales during lockdown.

“The used car market continues to offer an enormous amount of choice to drivers at all price points, and changes in commuting habits may be leading more people to purchase a car so they can avoid public transport.

“The large range of affordable cars on the second-hand market means that drivers who need a new or replacement vehicle, but also have concerns about job security or the state of the economy, can easily find one to suit their budget.

“With many people worried about their finances, it is more important than ever that drivers take care when buying a used car.

“We recommend buying only from a reputable dealer, and having a car independently inspected to ensure there are no major problems which could prove costly down the line. A warranty can provide extra peace of mind to those worried about having to pay for expensive repairs if something does go wrong with their car.”

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Notes to editor

[1]Searches for used cars on the AA Cars platform in 48 major towns and cities in the UK.

[2]SMMT new car sales

[3]Finance and Leasing Association

[4]Department for Transport