UK used car transactions grew 11.5% in 2021, despite Covid lockdowns and continued unsettled consumer and business confidence.

Overall used car market still down 5.5% on the pre-pandemic five-year average

A total of 7,530,956 used car transactions took place in 2021, up by 777,997 units and driven by record demand for used battery electric vehicles, according to the Society of Motor Manufacturers and Traders (SMMT).

But the overall used car market was still down 5.5% on the pre-pandemic five-year average and conditions fluctuated over the year. The second quarter was the best Q2 on record and, with 2.1 million transactions, the busiest period of the year as the UK emerged from renewed lockdowns. But Q4 was much weaker, with transactions falling by 3.1% YoY to just over 1.6 million, after December performance plummeted on the back of rising Omicron cases and increasing restrictions.

Demand for battery electric (BEV) and plug-in hybrid electric (PHEVs) vehicles hit record levels, growing by 119.2% and 75.6% to 40,228 and 56,861 transactions respectively. Hybrid electric vehicle (HEV) transactions also rose by 50.3% to 137,639 – again a new high. In total, these vehicles represented 3.1% of the market.

But even with record demand for alternatively fuelled vehicles, 96.6% of all used car sales were still either petrol or diesel models, after transactions for these powertrains increased by 10.7% and 9.8% respectively, with a combined 7,277,291 units changing hands.

The SMMT said the figures show how far the market must go to meet zero-emission ambitions.

Mike Hawes, SMMT chief executive, added: “With the global shortage of semiconductors set to ease later this year, releasing the squeeze on new car supply, we expect more of the latest, cleanest and zero-emission models to become available for second owners. The demand for personal mobility has undoubtedly increased during the pandemic, so it’s vital we have healthy new car sales to drive fleet renewal and the used car market if we are to improve air quality and address climate change.”

In terms of segment performance,  superminis remained the most popular body type during 2021, taking a third of the market (32.7%), followed closely by lower medium (26.4%) and dual purpose (13.2%), with all segments seeing transactions increase.

And while grey reigns supreme as the best-selling colour for new cars, black was most popular for used models, followed by silver and blue.