UK used car transactions fell 12.2% in the third quarter of 2022, marking the second consecutive quarter of decline.

It’s the first time that Q3 used car transactions have dipped below two million since 2015

A total of 1,785,447 vehicles were sold – the first time that Q3 transactions have dipped below two million since 2015.

The latest decline was again the result of new car supply shortages on stock supply – along with tougher economic conditions – and brings the year-to-date figure down 9.7% to 5,319,482.

Battery electric vehicle sales, however, continued to rise; up 44.1% to 16,775 and taking the year-to-date total to 48,032 in the year to date. Sales of used hybrid electric vehicles (HEVs) also grew, up 2.5% in the quarter to 41,479 cars, taking the yearly total so far to 119,722. But plug-in hybrid transactions fell 5.8% to 13,899 in Q3, though they remain up 7.1% since January at 44,724.

As a result, combined transactions for electrified vehicles reached a 4.0% market share in the third quarter, up from 3.3% a year before. However, used petrol and diesel vehicle continued to dominate, totalling 1,708,299 transactions in Q3, with petrol taking the lion’s share of the total market at 57.1%.

Mike Hawes, SMMT chief executive, said the declining used car market came as little surprise, but welcomed the surge in electric car take-up.

“The demand is clearly there,” he added, “and to feed it we need a buoyant new car market, which means giving buyers confidence to invest. Next week’s Autumn Statement is an opportunity for the Government to make a long-term fiscal commitment to zero emission motoring, including adequate public charging infrastructure, which, especially given the economic headwinds, would go a long way to stimulating the market and delivering both economic and net zero progress.”

A deeper drive into the SMMT figures shows that sales declined across all segments, superminis maintained their popularity, with a 32.2% market share, followed by lower medium (26.4%), while dual purpose (crossovers) came in third (14.7%) and had the smallest decrease (down 0.8%). Collectively these three segments account for more than seven in 10 (73.3%) of all used car purchases in the quarter. Meanwhile, MPV transactions fell the most, down 18.5%, followed by minis (down 18.2%) and upper mediums (down 17.1%).

Black remained the most popular used car colour, taking up a fifth (21.4%) of the market, ahead of grey which moved into second place – up from fourth this time last year – while blue remained in third. Demand for silver vehicles fell by 18.0%, the most for any colour, pushing it from second to fourth place this quarter.