Q2 Reports Indicate a Slow Fall in the Used Car Market
Q2 reports published last week include data analysis from the Society of Motor Manufacturers and Traders (SMMT), and its looking like 2017 has been slow in regards to the sales of used cars.
Indeed, the reports indicate that the used car market sales have plummeted by 13.5% during the second quarter of 2017.
The reports detail that 1,832,400 transactions were made over the period. Whilst this number might seem substantial, it still falters behind the 2016 Q2 report, which showed record numbers of sales within the used car industry.
Some have suggested that the decline in sales may have been a result of the VED rate introduction earlier this year, on April 1.
Mike Hawes, chief executive of SMMT has commented on the report, stating that:
“With used car sales closely mirroring what we see in the new car market, last quarter’s decline comes as no surprise – and with demand easing over recent months, this could offer motorists the opportunity to get some great deals. However, 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.”
Diving into the details of the report, SMMT have stated that the most popular vehicle transaction belonged to the superminis, which saw 600,000 buyers over Q2 – that accounts for 32.7% of the used car marketplace.
Second place was taken by smaller family cars, with nearly 500,000 exchanges taking place.
In the cases of both minis and SUVS, both saw some substantial growth on last year’s figures, with mini sales increasing by 5.7% and SUV sales increasing by 3.5%.
Q2 seemed to have followed the same trend that Q1 saw, with a decrease in demand of used vehicles throughout the marketplace. Analysts have suggested that this may be due to increased interest in newer cars following the stigmatisation of older and unhealthier cars earlier this year.
Substantiating this are statistics that show petrol sales decreasing by 8.9% to 2,291,328 units, while alternatively fuelled vehicles (AFVs) rose 24.2%. Furthermore, electric cars show the most promise, with strong growth of 79.3% in the sector.
Whilst percentile growth remains strong, volume sales are still relatively low, as the electric type vehicle is still in its infancy in regards to availability on the marketplace.