The number of used cars sold on forecourts during the first quarter of 2021 was down 8.9 percent on the previous year with around 164,000 fewer vehicles sold during this period. The decline has been blamed mostly on the impact the pandemic has had on used car dealers.
The SMMT has said the new car recovery was down to the reopening of showrooms and “market confidence improving.
Some of this could also be down to manufacturers getting to grips with online sales and working around the pandemic.
However, analysis of the data suggests much of the rise in demand for new vehicles is the surge in the electric car market.
So far in 2021, 40,932 fully electric models have been sold compared to just over 19,500 last year.
Mr Kemple added: “The 2030 ban on new petrol and diesel cars has also forced drivers to reconsider their options.
“The average age of a vehicle on the road is 7.8 years, according to the SMMT, so the ban being just a decade away will influence people’s decisions now.
“‘Filler’ cars might be feasible for some, but for others, buying a new or used AFV or hybrid model now could be more cost-effective in the long term, rather than after the ban comes into force.
“For used cars, there’s a clear supply issue – partly due to Brexit.
“Until the trade deal was agreed there was a real worry that Britain’s automotive sector would not be able to trade with the EU.
“This was especially concerning for manufacturers, as four out of five cars made in the UK are exported.
“But beyond Brexit, a general contraction in new car sales over recent years has meant the used ‘car park’ of the UK has shrunk.
“This bottleneck has pushed prices up, both at a wholesale and retail level.”
Published at Fri, 14 May 2021 13:01:00 +0000