New model shortages drive near-record demand for used cars
Written by Hit Music Radio News on 10/08/2021
A shortage of new models has helped drive a near-record leap in sales of used cars, according to industry figures.
The Society of Motor Manufacturers and Traders (SMMT) reported that 2,167,504 vehicles changed hands during the second quarter of the year – up 6.6% on 2019 pre-pandemic levels.
The body said it was the best April to June performance on record and almost the best quarter ever for the used car market.
It charted several reasons for the performance including post-lockdown pent-up demand – with sales rising by more than 300% in April alone compared to the same month the previous year as showrooms re-opened and personal sales got back in gear.
It said that petrol and diesel models accounted for more than 96% of the used vehicles sold – with just 1.3% of the total being plug-in cars.
However, The SMMT said that battery electric and hybrid model sales more than tripled over the quarter to 10,903 and 16,202 respectively as newer second-hand vehicles became available in the market.
An acceleration in low or no emission vehicle sales is unlikely in the coming months as new car sales are impacted by weak supply – a consequence of the shortage of semiconductor chips which has hit production globally.
The industry says its efforts to boost output have also been damaged by the so-called ‘pingdemic’ – demands to self-isolate via the NHS COVID app – leaving factories short of key staff.
Last month was the weakest July for new car sales since 1998.
SMMT figures released earlier this month showed that just 123,296 new cars were registered in the UK during July – a fall of almost 30% on the same month last year.
Its chief executive, Mike Hawes, said of the new figures: “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.”
© Sky News 2020