Second-hand gross sales to ‘energize’ used electrical vehicles
- All Type News
- on May 10, 2022
Second-hand EV gross sales greater than doubled from final 12 months as new automobile paucity advantages old-car market
Second-hand automobile gross sales grew 5.2 % within the first three months of the 12 months in comparison with the identical interval final 12 months, however the electrical automobile enterprise greater than doubled — up 120 %.
Figures from the Society of Motor Producers and Merchants (SMMT) present that between January and March 2022, 1.77 million used vehicles had been bought – 86,500 greater than within the first quarter of 2021.
The newest figures from Auto Dealer’s month-to-month used value index present that used automobile costs had been up 32% in April 2022 in comparison with a 12 months in the past, though months of speedy value progress has now stalled.
The figures for the primary quarter replicate the bizarre scenario of final 12 months’s gross sales. Figures for January and February had been increased (17% and seven%, respectively) as sellers had been pressured to shut showrooms in early 2021, however figures for March had been down 7% as March 2021 noticed a rise in transactions as Dealerships totally reopened.
AA Automobiles CEO James Fairclough commented: “The lack of the brand new automobile market has been the achieve of the second-hand market.
“The 2 elements that mixed to drive down new automobile gross sales are additionally boosting the used market.
“There’s a shortfall within the provide of latest vehicles for the primary sale. The variety of new autos rolling off UK manufacturing strains within the first quarter of the 12 months fell by a 3rd in comparison with Q1 2021, and plenty of abroad vegetation are producing fewer vehicles than normal.
“In distinction, used vehicles have one apparent benefit – availability.
“However there are indicators that squeezing the price of dwelling helps to tilt issues in favor of used vehicles. Inflationary pressures and more and more bleak financial information are prompting many consumers to think twice about big-ticket purchases like vehicles. ,
He mentioned the potential financial savings between new and used vehicles was additionally stimulating curiosity in used EVs as consumers thought-about the advantages of environmental and working prices within the face of rising gas prices.
what automobile? The used-car market will proceed to profit from provide points within the new automobile vary, mentioned Jim Holder, editorial director of the corporate, however warned that ultimately restricted provides will affect the used-car enterprise as effectively.
He commented: “With no finish to the semiconductor scarcity within the new automobile market, the used automobile market is predicted to get pleasure from one other robust quarter this 12 months, regardless that the most recent information from SMMT exhibits that the market Beginning to stabilize.
“In line with our newest analysis, used consumers stay essentially the most energetic out there. Nonetheless, the used automobile inventory is inherently tied to the brand new automobile market, and supply delays in new automobile gross sales, particularly for electrical autos. , this may imply that issues like the marketplace for used electrical autos are usually not rising on the fee it must, posing an issue for the sector within the years to come back.”
Auto Dealer’s Ian Plummer additionally warned that the used automobile market, particularly for brand new fashions, would quickly really feel pressured by the brand new automobile vary.
He added: “If fewer new vehicles are rolling off the manufacturing line, it’s as a result of the variety of vehicles bought is decrease. Right now’s figures level to a slight decline in gross sales of older vehicles in comparison with pre-Covid ranges. The shortage of an extended provide chain implies that fleet operators and leasing corporations are hanging on to autos for longer durations, limiting the variety of older vehicles coming into the market.”
He mentioned that whereas new used vehicles — as much as three years outdated — had been the weakest for it, gross sales of older fashions had been stronger, reflecting an oversupply of autos.
Mike Howes, chief government of SMMT, mentioned: “With the brand new automobile market being disrupted by ongoing world provide constraints, progress within the used automobile market is welcome, if no more, particularly provided that we went into lockdown final 12 months. Have been.
“Gross sales of electrical vehicles are energizing the market, zero emission autos have began filtering to a lot of customers to drive the most recent and greener autos.
“Whereas the used market has some strategy to go earlier than we see the current progress in new EVs, a buoyant new automobile market shall be crucial to serving to drive fleet renewals which can be important to the supply of carbon financial savings. Is.”