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

That equates to 145,381 extra used automobiles altering house owners, taking the whole H1 transactions to three.53 million.

Gross sales of superminis, such because the Ford Fiesta, Volkswagen Polo and Vauxhall Corsa, have been significantly robust, and these small, usually reasonably priced automobiles accounted for 31.5% of all of the second quarter’s used automotive gross sales, adopted by decrease medium/C-Phase automobiles such because the Volkswagen Golf and BMW 1 Sequence.

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

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

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

Business analysts akin to Derren Martin at Cap HPI have identified this yr that tumbling values of pre-owned electrical automobiles have meant that they’re extra reasonably priced to used automotive consumers.

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

Mike Hawes, SMMT chief govt, mentioned: “It’s nice to see a recharged new automotive sector supporting demand for used automobiles and, specifically, serving to extra folks to get behind the wheel of an electrical car.

“Assembly the undoubted urge for food for pre-owned EVs will depend upon sustaining a buoyant new automotive market and on the availability of accessible, dependable charging infrastructure powered by reasonably priced, inexperienced power. This, in flip, will permit extra folks to drive zero at a value level suited to them, serving to speed up supply of our environmental targets.”

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

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

“As customers search for compliant automobiles, many will flip to the used market with a purpose to get monetary savings in comparison with buying a brand new automotive,” she mentioned.

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

And the RAC Supplier Community stories 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 automotive retailers have been for automobiles on this age vary however through the first six months of this yr, 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% improve 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 consumer director at Assurant, which companions with the RAC within the guarantee and aftersales sector, mentioned: “These figures present how post-pandemic car shortages and the next ageing of the automotive parc are having an rising impression on guarantee claims, with a marked shift in direction of the higher finish of the age ranges by which we provide cowl.

“As has been extensively reported, sellers are discovering themselves in a state of affairs the place they’re promoting extra aged automobiles, a improvement that appears set to proceed for a while to come back. What has been much less extensively coated is the function that guarantee suppliers such because the RAC and Assurant have performed in serving to them via this shift, offering the duvet that automotive consumers need though claims on older automobiles are clearly increased and extra expensive.”

Ian Plummer, business director at Auto Dealer, the UK’s largest automotive market, mentioned that urge for food continues to gasoline the market. “The provision of used automobiles has been gradual to return after the covid pandemic hit new automotive gross sales, however because it does return we’re seeing that out there inventory is promoting properly and shortly, actually automobiles aged 5-10 years are promoting in simply 28 days.

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