Used car market follows new car trend as sales drop in second quarter

The used car market had a weak second quarter of 2017 as sales fell by 13.5 per cent compared with last year.

Year-to-date registrations are down 5.1 per cent, mirroring the downward trend also seen in the new car market following a record month in March that was driven by changes to vehicle excise duty on April 1.

Used car sales were more resistant to this fluctuation as tax changes only affected new car registrations. However, Mike Hawes, chief executive of industry body the Society for Motor Manufacturers and Traders, warned that the used car market closely mirrors new car sales, so continued decline could be on the cards.

He said: “Although the market remains at an exceptionally high level, given the softening we’ve seen in registrations of new cars in more recent months, looking ahead it is vital that government secures the conditions that will maintain consumer and business confidence if we are to see both markets continue to prosper.”

In the first six months of 2017, second-hand diesel sales remained strong with just 0.1 per cent fewer vehicles sold, compared with a decline of 11 per cent for new diesel registrations in the same period. That’s despite the fact that older diesels are more likely to be affected by potential bans or localised taxation schemes. Modern ‘Euro 6’ diesel engines must obey stricter emissions regulations.

Meanwhile, alternatively fuelled vehicles – including hybrid, electric and hydrogen models – showed strong growth of 24.2 per cent, though they still make up just 1.2 per cent of the market. Used electric vehicle sales shot up by nearly 80 per cent compared with 2016.