UK used car transactions grew 5.1% in 2023 while battery electric car sales almost doubled.

More than 7.2 million used cars changed hands last year

More than 7.2 million used cars changed hands last year, as an improving new car market re-energised supply, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). The market was up by 351,915 units on 2022, following four straight months of growth.

Across the year, sales of used battery electric cars (BEVs) almost doubled, rising 90.9% to a record 118,973 units. BEVs also took a 1.6% share of the overall market, up from 0.9% in 2022. The uplift is in line with growth in the new car sector.

Sales of full hybrid and plug-in hybrid cars were up by 40.0% and 25.1% respectively and, collectively, electrified vehicles represented 5.6% of the market – up from 4.0% in 2022.

However, diesel and petrol remained the most dominant fuel types, with a total of 6,827,466 units changing hands – 94.3% of the overall market.

The industry continues to call for a VAT cut on new EVs so future supply can grow to meet second-hand demand.

Mike Hawes, SMMT chief executive, said: “A healthy new car market is key to driving choice in the used sector and it’s great to see record numbers of second and third owners benefiting from the growing availability of electric vehicles. The demand is there, but to sustain it we must enable every motorist to make the switch.

“The upcoming Budget is a prime opportunity for government to do just that – halving VAT on new EVs, while making public charging as easy and affordable as plugging in at home, would ensure a faster and fairer transition for all, giving the UK a green economic boost.”

And Lisa Watson, director of sales at Close Brothers Motor Finance, commented: “The SMMT’s manufacturing and new registrations data has continued to rise as confidence returns and well-documented supply issues have subsided, which in turn should lead to more quality stock entering the used market. This should also provide an influx of electric vehicles at a more affordable price point, which has so far been a barrier to widespread adoption.

“However, whilst reduced purchasing costs may attract more motorists to EVs, the Government needs to ensure infrastructure such as charging points is rolled out quickly so the UK is able to support a transition to EVs and the 2035 ban on new petrol and diesel vehicles is to be realistic.”

Across the whole used car market, the SMMT research showed that superminis remained the most popular used car body type, accounting for one in three (32.1%) sales in the year. They were followed closely by cars in the lower medium segment, which took 26.6% of the market, and dual-purpose vehicles (15.2%). The smallest volume segment was luxury saloons, representing just 0.5% of transactions.

Black was the most popular choice for used cars with more than 1.5 million buyers (21.4%) choosing the colour, bucking the grey trend in the new market. Grey, however, increased its ranking, displacing blue to take second place. At the niche end of the spectrum, 4,870 buyers opted for pink, while 4,686 cream cars found new owners, and maroon represented 4,585 transactions.