Used car market grows in 2021 but falls short of pre-pandemic average

Sales of used cars increased by 11.5 per cent in 2021, according to new data released by the Society of Motor Manufacturers and Traders (SMMT).

In total, 7,530,956 used cars were sold during the year, but despite this growth, sales were still 5.5 per cent below the pre-pandemic five-year average.

However, the second quarter of 2021 was the best on record with 2.1 million transactions and, according to the SMMT, was the busiest period of the year as the UK exited lockdown measures.

Though May saw 769,782 cars sold, December’s performance fell by 10.2 per cent as cases of the Omicron variant rose.

Similar to new car sales, the demand for used electric cars also soared in 2021. Sales of 40,288 during the year represented a 119.1 per cent increase on 2020, while demand for plug-in hybrid vehicles also increased by 77.1 per cent to 54,115.

Petrol and diesel-powered vehicles saw modest increases in sales in comparison, up 10.7 and 9.8 per cent respectively.

Mike Hawes, SMMT Chief Executive, said: “It’s good to see the used car market return to growth, even if activity is still below where we were pre-pandemic. With the global shortage of semiconductors set to ease later this year, releasing the squeeze on new car supply, we expect more of the latest, cleanest and zero emission models to become available for second owners.

“The demand for personal mobility has undoubtedly increased during the pandemic, so it’s vital we have healthy new car sales to drive fleet renewal and the used car market if we are to improve air quality and address climate change.”

The Ford Fiesta was the UK’s most popular used model with 326,435 examples sold during 2021, followed by the Vauxhall Corsa and Ford Focus with sales of 262,448 and 251,265 respectively.