The UK’s used car market rose 5.1% in the first quarter of 2022, supported by record sales of battery electric vehicles (BEVs).

The used car market in Q1 rose 5.1% to 1,774,351 transactions; up by 86,596 units

The overall sector saw a total of 1,774,351 transactions take place, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT); up by 86,596 cars compared with the same period in 2021.

Sales were particularly buoyant in January and February, with rises of 17.7% and 7.4% respectively as the new car market continued to battle supply challenges from the global shortage of semiconductors.

But March fell 6.8% when compared with the stronger performing month in 2021 as the pandemic-affected market began to recover.

And despite the growth over 2021, Q1 used car transactions remain 12.2% below 2019 on a pre-pandemic comparison.

The latest figures also show record demand for used BEVs, which saw transactions more than double from 6,625 to 14,586; a rise of 120.2%. Plug-in hybrids (PHEVs) and hybrids (HEVs) were also up, rising by 35.3% to 14,433, and 28.8% to 35,007 units respectively.

But petrol and diesel powertrains continued to dominate the used market, representing 96.2% of used sales, or some 1,707,135 units. Plug-in vehicles comprised 3.6% of the total market share – up from 1.6% in Q1 2021 but illustrating the continued dominance of ICE engines.

Among the model classes, the mini, dual purpose and supermini segments saw the largest growth, up 13.5%, 12.3% and 9.1% respectively. MPV transactions were down by 7.5%, followed by luxury saloons (3.4%) and upper mediums (3.0%). Superminis (32.6%) remained the most popular used buy, followed by lower medium (26.6%) and dual purpose (14.0%); these three segments accounted for more than seven in 10 (73.2%) of all deals.

Black was the most popular colour choice, accounting for one in five cars or some 383,418 units, followed by blue and silver/aluminium.

Mike Hawes, SMMT chief executive, said that while the growth in the used car market was welcome, it was unsurprising especially given we were in lockdown last year and with the new car market still hampered by ongoing global supply shortages.

He added: “Electric car sales are energising the market, with zero-emission vehicles starting to filter through in larger numbers to consumers looking forward to driving the latest and greenest vehicles. Although there is some way to go before we see the recent growth in new EVs replicated in the used market, a buoyant new car market will be vital to help drive fleet renewal which is essential to the delivery of carbon savings.”

Jamie Hamilton, automotive director and head of electric vehicles at Deloitte, said that the doubling of used electric vehicle sales in Q1 signals the emergence of a robust second-hand market, and paves the way for greater take-up.

“An established used vehicle market makes EVs more accessible to those consumers who may not be able to afford a brand-new vehicle. These consumers will also benefit from the total cost of ownership savings over a vehicle’s lifetime that would have otherwise been unavailable to them. Ultimately, it also encourages a greater proportion of zero-emissions vehicles on the road.”

He continued: “For existing EV owners, today’s figures should instil confidence in their vehicle’s residual value which, eventually, also filters through into more attractive financing deals for new car sales and fleet renewal.

“With record-high fuel prices at the pumps, interest in electric vehicles can be directly attributed to a shift in consumer behaviour. As the cost of fuel has skyrocketed, many dealers have seen a direct correlation with EV enquiries.”