SMMT: Q1 used car sales surpass two million for first time since 2019

The UK's used car market started the year on a high with 2,020,990 vehicles changing hands in Q1 – the first time sales have breached two million in the first quarter since before the pandemic – according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT).¹ Sales grew by 2.7% on the same period last year, capping off nine consecutive quarters of growth as the market responded to greater supply from the new car sector.

Petrol remained the best-selling fuel type, rising 2.1% to 1,149,855 units, while diesel experienced a -3.1% decline to 679,739 units. As a result, ICE cars made up 90.5% of all used transactions in the quarter. However, their combined market share fell 2.4 percentage points on Q1 2024 as more buyers opted for electrified options.²

Hybrids attracted record numbers of second and third owners, up 30.2% to 98,830 units, while 23,540 plug-in hybrids changed hands, up 14.0% on the same period last year. Battery electric cars recorded the highest growth, increasing by 58.5% to 65,850 units and a record 3.3% share of all transactions.

This positive performance saw the greenest powertrain continue its streak as the fastest growing, a trend which must continue to deliver the UK's net zero goals. Long term success, however, relies heavily on healthy demand for new electric cars, making government incentives paramount. Halving VAT on new EVs and scrapping or amending their liability to the VED Expensive Car Supplement, alongside equalising VAT paid on public charging to domestic rates, would all help increase uptake of new cars and, in turn, promote a vibrant used market.

Smaller cars remained the mainstay of demand, with superminis again the best-selling segment, accounting for almost a third (32.4%) of all used car transactions, followed by small family (lower medium) cars (27.0%). Dual purpose models also proved popular, accounting for 16.8% of sales. Combined, these segments represented three-quarters (76.2%) of all transactions in the period.  Specialist sports, executive, upper medium and MPV were the only segments to record declines in Q1, down -6.1%, -3.5%, -1.6% and -0.4% respectively.

Black was the most popular colour for the 29th quarter, accounting for a fifth (21.2%) of cars sold, while grey and blue held second and third place, up 6.3% and 1.2%, respectively. Previous best-seller silver, along with orange and gold, were the only colours within the top 20 to record declines, falling by -3.1%, -4.9% and -5.1% respectively.

Mike Hawes, SMMT Chief Executive, said, “The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fuelled by a recovering new car market. Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch. Sustaining and expanding this growth, however, depends on a healthy supply of EVs from the new car market – which in turn requires fiscal incentives alongside a nationally accessible and affordable charge point network so that everyone, whatever their budget or driving needs, can benefit from zero emission motoring.”