Used buyer demand for battery electric (BEV) and plug-in hybrid (PHEV) vehicles continued to climb fast in Q3, despite a fall in the overall used market.

The number of used battery electric vehicle transactions in the last quarter soared 56.4% to 14,182 units – the highest number ever recorded for any quarter

The number of BEVs changing hands in the last quarter soared 56.4% to 14,182 units – the highest number ever recorded for any quarter, according to data from the Society of Motor Manufacturers and Traders (SMMT). PHEVs were up to 14,990 units – only narrowly had of BEVs now. Sales of hybrid electric vehicle (HEV) also increased by 20.3% to 40,157 transactions.

As a result, the market share for all used plug-in vehicles increased to 1.4%, up from 0.9% the previous year. And while petrol and diesel powertrains still accounted for the lion’s share, comprising 96.4% of all transactions, they were down by 6.9% and 7.6% respectively.

The rise in used plug-in demand comes despite a 6.2% fall in the used car market in Q3; down to 2,034,342 units against a strong Q3 2020. Transactions fell in every month in the quarter and the period is down 2.0% on pre-pandemic 2019  figures, making it the weakest quarter three since 2015.

Thanks to stronger demand in Q1 and Q2, the used market is up 16.4% year-to-date but still 4.0% down against the same pre-pandemic period.

The SMMT said the decline showed how the semiconductor supply issues are now hitting the used car market too.

Mike Hawes, SMMT chief executive, explained: “Given the circumstances, with the global pandemic causing a shortage of semiconductors needed to produce new vehicles, undermining the new car market, used transactions were always going to suffer too. This is particularly worrying as fleet renewal – of both new and used – is essential if we are to address air quality and carbon emissions concerns.”

New data from Close Brothers Motor Finance also underscores the significant knock-on effect of the global semiconductor shortage on used car sales. Four in five (80%) dealers say they’ve seen more people buying used cars as a result, whilst three in four (77%) have reported a significant increase in demand because customers can’t get the new car they wanted. And almost the same number (75%) have seen more demand because customers don’t want to wait for a new vehicle.

All segments saw declines, with MPVs falling most, down 13.1% in the third quarter. Superminis were the most popular body type, taking a third of the market (33.0%), followed by lower medium (26.0%) and dual purpose (13.0%).

Black remained the most popular colour choice, followed by silver and blue. But the only colours to actually see used sales increase during Q3 were orange (up by 3.6%) and brown (up 1.1%).