Used car sales surge over second quarter

Supply of new models remains low on shortage of semiconductor chips

The UK’s used car market boomed during Q2 of this year, according to numbers released on Tuesday by the Society of Motor Manufacturers and Traders (SMMT).

In its second best quarter ever, the market grew by 108.6%.

Over the past three months 2,167.504 used vehicles were sold, an increase of 6.6% compared to the same period in 2019, which came before the pandemic.

There was substantial growth in all three months during the last quarter, with April, May and June up 307.4%, 9.9% and 4.6% respectively.

Car makers from all over the world have been forced to reduce their production levels as a result of the global shortage of semiconductor chips.

At the same time, as restrictions eased, but people remained cautious over using public transport, demand for private vehicles saw a resurgence.

Demand for used electric and hybrid vehicles grew between April and June, however, transactions were still made up mostly by petrol cars.

SMMT chief executive Mike Hawes said: “This is welcome news for the used car market as transactions rebounded following nationwide lockdowns which closed retailers.”

“More motorists are turning to used cars as supply shortages continue to affect the new car market, and the increased need for personal mobility with people remaining wary of public transport as they return to work.”

“A buoyant used car market is necessary to maintain strong residual values which, in turn, supports new car transactions. We now need to see a similar rebound in new car sales to accelerate the fleet renewal necessary to deliver immediate and continuous improvements in air quality and carbon emissions.”