Used car sales were cut in half between April and June this year as the coronavirus blockade prevented dealers and private owners from selling vehicles.
New figures from the auto trade association show that the used car market is down 49 percent, with used car transactions down by a million units.
However, industry insiders say the used car market as a whole has performed strongly since the lockdown ended, with small car prices notably rising as buyers look for more affordable models to use.
SUVs have also risen in value since the lockdown was relaxed as Britons continue to buy older gas-guzzling family cars, Cap HPI said.
Coronavirus Drops Used Car Sales: Used Motorbike Transactions Halved in April to June, According to Official Figures Published Today
Only 1,039,303 used cars changed hands in the second quarter of the year, the Society of Motor Manufacturers and Traders (SMMT) said.
That’s down from 2,034,236 in the same three months of 2019, official records show.
The decline followed a bumper in January and February, with growth reversing as the coronavirus engulfed the UK.
It means that in the first six months of 2020, the number of used car transactions decreased by 29 percent, with 2.89 million units changing hands. The second quarter represented more than 85 percent of the 1.16 million lost sales so far this year.
Since lockdown measures have been relaxed, the trade association said there are signs that the used car market is recovering.
The highest annual loss came in April, when the British were urged to stay indoors and leave their home to play sports for most of the month.
As a result, used car sales fell by three quarters (- 74 percent) in that one month.
By June – the first month auto showrooms were allowed to reopen to the public – pre-owned model transactions had fallen by only 18 percent as private sellers and buyers got moving again and the transactions started again.
In the second quarter of 2020, approximately 1 million fewer cars changed hands than in the same months a year ago
After the bumper month in July for new car registrations – an increase of 11 percent per year – the industry hopes for a similar recovery for the used market in the third quarter.
SMMT CEO Mike Hawes described the numbers as “devastating” but “not surprising.”
“ With the UK moving again and dealers continuing to reopen, we expect more activity to return to the market, especially as many people see cars as a safe and reliable way to travel during the pandemic. ” he added.
“However, if we are to revitalize the sales and fleet renewal needed to drive environmental gains, we need support for the economy as a whole to build business and consumer confidence.”
Following the bumper month in July for new car registrations – an increase of 11 percent per year – the industry hopes to see a similar recovery for the used car market in the third quarter.
But the SMMT warned that it “remains unclear how long it will take for the market to recover, given economic uncertainties and the need for more activity in the new market to drive new inventories.”
Demand for second-hand battery-powered electric vehicles, which grew 45 percent in the first quarter of 2020, fell 30 percent in the second quarter to 2,288 units.
At the same time, plug-in hybrid sales fell 56 percent, with only 3,249 changes of ownership.
Meanwhile, gasoline and diesel car transactions are both down 49 percent, although together they still accounted for 98 percent of sales in the quarter due to the limited availability of used electric and hybrid vehicles.
Despite a 52 percent drop between April and June, superminis remained the most popular pre-owned purchase with 316,570 new owners in the second quarter, representing nearly a third (31 percent) of the market.
While transactions fell across the board, cap hpi data experts say the used car market as a whole has performed strongly since the lockdown ended, with some city cars and superminis, in particular, seeing value increase as buyers seek out cheaper cars to use.
It was especially acute for older vehicles, it added.
The Ford Fiesta remains the most popular new and used car in the UK, while the most popular used bike color was black.
The Ford Fiesta retains its crown as the most-bought used car, with nearly 42,000 changing owners in the second quarter of the year.
Next on the list were the VW Golf (37608) and Ford Focus (36852)
Black remained the most popular color choice with 227,660 units sold in the second quarter of 2020, followed closely by silver / aluminum, blue, gray and white.
Car sales fell, but the number of installations for electric car chargers grew
Sales of new and used cars may be well behind in the second quarter of 2020, but according to new statistics, the installation of new chargers for electric vehicles has increased.
As of July 1, 2020, according to new government figures, 18,265 public charging points for electric vehicles were available in the UK.
In the second quarter of 2020, a total of 318 more devices were available, 2 percent more than in the previous quarter.
Of those, 99 were ‘fast-charging’ fast devices that were able to replenish the batteries in the shortest possible time, the Department of Transportation said.
RAC chief road policy Nicholas Lyes said: “Despite the coronavirus, it is clear that the installation of new electric vehicle chargers is continuing at a rapid pace.
With suggestions that we have passed ‘peak gas’, the sight of many new chargers in prominent locations such as supermarket parking garages could be the nudge some drivers have to choose a plug-in car next time they switch cars, more than one that runs purely on gasoline or diesel. ‘
London has the highest availability of charging devices, with 57 per 100,000 people.
Scotland has 35 per 100,000 inhabitants, which is higher than the UK average of 27.
Britons’ love affair with used SUVs continues …
Cap hpi said the coronavirus may have slowed the used vehicle industry, but the British interest in used SUVs remains strong.
The most recent data shows that SUVs now account for more than one in four (27 percent) used vehicles sold in the UK, doubling the market share since 2016, which in turn gives these high-riding cars strong values. enforce in the second-hand market.
Mark Bulmer, senior appraisal editor and SUV expert at cap hpi said: “Clearly, Brits love their SUVs and demand continues to drive segment growth.
‘The number of models has grown rapidly from all manufacturers and for all budgets. From a Dacia to a Lamborghini, there is an SUV to suit every need. ‘
Used SUV values continue to rise as families continue to shop in the used market for the following engines. Popular choices include the Skoda Yeti (photo)
The Honda CR-V is another popular SUV that has been increasing in value in recent months
In the past 12 months, mean values in the SUV sector at the age of three have increased by almost 3.5 percent.
And while 2020 has proven to be a strong period for used car values across all mainstream sectors, rising prices are evidence of the strong demand for this body style.
Several makes and models are currently proving to be popular new buys, including the Skoda Yeti, which was named the most affordable family car to insure by This is Money earlier this week.
Other popular used SUVs are the Honda CR-V, Hyundai Tucson, Nissan Juke and Peugeot 2008.
In the UK, a large number of new SUV models will be launched in 2020 covering all industry sizes and electric, hybrid, petrol and diesel vehicles are expected to meet the demands of a rapidly evolving market.
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