The UK’s used automobile market continues to climb again in the direction of its conventional stage, in response to knowledge from the Society of Motor Producers and Merchants which reveals the primary half of 2023 recorded 4.1% used automobile transactions progress year-on-year.

That equates to 145,381 extra used automobiles altering homeowners, taking the overall H1 transactions to three.53 million.

Gross sales of superminis, such because the Ford Fiesta, Volkswagen Polo and Vauxhall Corsa, had been notably sturdy, and these small, usually inexpensive automobiles accounted for 31.5% of all of the second quarter’s used automobile gross sales, adopted by decrease medium/C-Section automobiles such because the Volkswagen Golf and BMW 1 Collection.

Following latest years of progress in gross sales of latest electrical autos (EVs), naturally there was progress in UK gross sales of used battery electrical autos such because the Nissan Leaf, Cupra Born and Tesla Mannequin 3, however they continue to be a tiny proportion of the market.

In the course of the second quarter of 2023 the gross sales of second-hand battery EVs within the UK climbed by 82% to 30,645 items. That represented a 1.7% share of all used automobile gross sales, up from 1% in Q2 2022.

Gross sales of plug-in hybrids rose 11.4% to 18,437.

Business analysts equivalent to Derren Martin at Cap HPI have identified this 12 months that tumbling values of pre-owned electrical automobiles have meant that they’re extra inexpensive to used automobile consumers.

The SMMT has identified that the present market stays some 10% behind 2019 ranges.

Mike Hawes, SMMT chief government, stated: “It’s nice to see a recharged new automobile sector supporting demand for used automobiles and, particularly, serving to extra individuals to get behind the wheel of an electrical automobile.

“Assembly the undoubted urge for food for pre-owned EVs will rely on sustaining a buoyant new automobile market and on the availability of accessible, dependable charging infrastructure powered by inexpensive, inexperienced vitality. This, in flip, will permit extra individuals to drive zero at a value level suited to them, serving to speed up supply of our environmental objectives.”

Lisa Watson, gross sales director at Shut Brothers Motor Finance, stated she believes the growth of London’s Extremely Low Emission Zone (ULEZ), and the probability of different cities adopting comparable schemes, might assist to drive the used automobile market restoration.

Diesel automobiles produced after 2016 are ULEZ compliant, as are most petrol automobiles produced after 2005.

“As shoppers search for compliant autos, many will flip to the used market with a purpose to get monetary savings in comparison with buying a brand new automobile,” she stated.

However excessive used automobile prices – pushed by demand overtaking provide between 2020 and 2023 – might imply that some consumers are having to decide on an older used automobile than they’d ideally choose.

And the RAC Seller Community experiences that the variety of warranties it has offered for 10 to 20-year-old automobiles has risen by 67% for the reason that pandemic.

In 2020, 6% of all insurance policies offered via its 1,200 used automobile retailers had been for autos on this age vary however through the first six months of this 12 months, it had risen to 10%. Equally, the variety of claims on this class have risen from 15% to 21% of the general complete made.

There has additionally been a marked 34% enhance in warranties offered for five to 10-year-old automobiles over the identical time interval, rising from 34% to 46%. Claims have comparably elevated from 61% to 65%.

Lee Coomber, RAC shopper director at Assurant, which companions with the RAC within the guarantee and aftersales sector, stated: “These figures present how post-pandemic automobile shortages and the following ageing of the automobile parc are having an growing influence on guarantee claims, with a marked shift in the direction of the higher finish of the age ranges wherein we provide cowl.

“As has been broadly reported, sellers are discovering themselves in a scenario the place they’re promoting extra aged autos, a growth that appears set to proceed for a while to return. What has been much less broadly lined is the function that guarantee suppliers such because the RAC and Assurant have performed in serving to them via this shift, offering the quilt that automobile consumers need despite the fact that claims on older autos are clearly increased and extra expensive.”

Ian Plummer, business director at Auto Dealer, the UK’s largest automotive market, stated that urge for food continues to gas the market. “The availability of used automobiles has been sluggish to return after the covid pandemic hit new automobile gross sales, however because it does return we’re seeing that obtainable inventory is promoting nicely and shortly, in truth automobiles aged 5-10 years are promoting in simply 28 days.

“This pace of sale is reflective of the sturdy ranges of demand we’re seeing on the Auto Dealer website with general viewers up 17% year-on-year in July which follows eight consecutive months of progress in website visits. This stage of demand offers us with a strong trajectory for wholesome ranges of gross sales within the coming months.