Used car market halved

The UK’s used car market slumped 48.9% in the second quarter of 2020 with just 1,039,303 units changing hands, according to the Society of Motor Manufacturers and Traders (SMMT).

The decline followed a bumper January and February, with growth going into reverse as coronavirus lockdown swept the UK.

The pace of decline eased as the quarter progressed, from a peak year on year loss of 74.2% in April to 17.5% in June.

Demand for pre-owned battery electric vehicles, which grew by 44.8% in the first quarter of 2020, declined in the second quarter by 29.7% to 2,288 units, although their market share remained stable at 0.2%. At the same time, sales of plug-in hybrids dropped 56.3%, with just 3,249 changing hands.

Meanwhile, petrol and diesel car transactions decreased by 49.2% and 48.5% respectively, although combined they still accounted for 98.3% of sales in the quarter, equivalent to 1,021,963 units.

In the first six months of 2020, used car transactions were down by -28.7%, with 2.89 million units changing hands. The second quarter represented more than 85% of the 1.16 million lost sales so far this year.

Mike Hawes, SMMT chief executive, said: “As devastating as these figures are, with full lockdown measures in place for the whole of April and May, they are not surprising. As the UK starts to get back on the move again and dealerships continue to re-open, we expect to see more activity return to the market, particularly as many people see cars as a safe and reliable way to travel during the pandemic. However, if we’re to re-energise sales and the fleet renewal needed to drive environmental gains, support will be needed for the broader economy in order to bolster business and consumer confidence.”