The UK’s used car market fell 8.5% in 2022 as a result of supply chain issues but demand for electric vehicles hit a new record.

2022’s used car performance was 13.2% off 2019’s pre-pandemic total

A total of 6,890,777 cars changed hands last year, some 640,179 fewer than in 2021 and 13.2% off 2019’s pre-pandemic total, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

The decline was the result of the squeeze on new car supply – primarily due to the global shortage of semiconductors – which then restricted stock entering the second-hand market.

There were glimmers of hope though. While Q4 was down 4.3% – marking the third successive quarterly decline – the fall wasn’t as steep as in quarters two (18.8%) and three (12.2%). And transactions actually increased by 0.8% in December in the first monthly rise since February – reflecting the renewed growth seen in the new car market.

Used electric vehicles bucked the overall downward trend. Transactions for battery electric vehicles (BEV) were up 37.5% to a record 71,071 units, boosting their overall market share to 1.0%, from 0.7% in 2021.

Demand for hybrid electric vehicles (HEVs) was also robust and saw transactions rise 8.6% while plug-in hybrid electric vehicle (PHEVs) transactions were up 3.6% against 2021 performance.

But electric vehicles, when combined, still only represented 4.1% of the market (up from 3.3% in 2021) and while transactions of used diesel and petrol cars fell by 11.8% and 7.7% respectively, they remained the dominant powertrains with a combined 6,594,880 units changing hands.

Nonetheless, the SMMT said record EV uptake was a bright spot and demonstrated a growing appetite for these models.

Mike Hawes, chief executive, added: “With new car registrations growth expected this year, more of the latest low- and zero-emission models should become available to second owners. Accelerating uptake is key and will be dependent on drivers being assured of a positive ownership experience. This means ensuring charging infrastructure keeps pace with demand as more new and used car buyers make the switch to zero-emission motoring than ever before.”

Delving further, the SMMT data shows black returned as the most popular colour for the year, accounting for a fifth (21.6%) of the market. Blue came second, with 16.4% share, and, despite grey topping the new car market, it ranked third for used cars at a 16.3% market share.

All market segments saw transactions decline, bar dual purpose which recorded a small growth of 0.8% and coming in as the third most popular body type. Superminis once again were in the lead, taking a third of the market (32.3%) despite recording a 9.0% fall in volumes. Following behind, lower mediums were the second most popular and were responsible for 26.3% of the market, but also noted a 9.6% decline. The smallest volume segment type was luxury saloons with a 0.6% market share.