The latest data from the Society of Motor Manufacturers and Traders (SMMT) is great news for the used car market in the UK. It shows that it grew by an impressive 5.5% in the third quarter of the year. In total 1,884,160 vehicles had a change of ownership during the three months. That will be music to the ears of dealers and everyone involved in car broking because it shows there is a lot of activity in the market.
Growth per power source
One of the most fantastic things is there was growth in the sales of all power sources. Let’s have a closer look at them.
The headline growth was the massive jump for battery electric vehicles (BEVs). These are cars powered purely with electricity. In Q3 the sales were 34,021, a 99.9% increase. So, in those three months demand almost doubled. It meant a rise in the used car market share from 1% to 1.8%.
Next on the list for the strongest growth was hybrid electric vehicles (HEVs). Hybrids have become a popular option because they include an internal combustion engine and electric motors and batteries. As a result, they have two types of power and can offer a number of advantages, such as higher fuel efficiency and less maintenance. Sales were up 46.4% in Q3.
Following hybrids was plug-in hybrid electric vehicles (PHEVs). They are similar because they have the two power sources. However, the major difference is you can plug them in to charge the battery just like with BEVs. The Q3 sales had a 34.6% increase.
The good news wasn’t just for electric and hybrid either. Sales of used petrol vehicles were up 4%, hitting an impressive 1,065,448 and showing they still dominate the market. Most people who work in car broking will deal primarily with these vehicles.
Finally, diesel vehicles also had a 2.3% increase. The total sales in Q3 was 704,204, making them comfortably second in terms of market share.
Most popular type of vehicle
The SMMT data also shows which type of used vehicles have been most popular in Q3. The most sales were for superminis. The total was 607,484, accounting for nearly a third of all sales. This was also a 5.8% rise.
Lower medium cars were the second most popular and had stronger growth at 7.1%. Surprisingly, dual purpose cars were third. These vehicles can be adapted to carry people or goods. Growth in their sales was also 7.1%.
Sadly some types didn’t fare well during the quarter. There was a dip in demand for luxury saloons, losing 2.5% of sales from Q2. Sports vehicles also lost out, with sales slipping by 1.8%.
Do you want to learn about car broking?
The figures for growth in used car sales will be great news if you are thinking about becoming a broker. They show the market is still in full swing, even at a time when values had a dip. That means the fall in prices was typically due to oversupply rather than a loss of demand.
With so much activity, there is plenty for people to do if they have a business in car broking. Every deal could earn a nice commission. You can learn more about it on our website. Then, if you decide you want to try, you can get a head start with our incredible business package. It is affordable and gives you a business in a box.
If you have any questions about any aspect of broking or our products, please contact us.