Used car market slips in Q2 2017
18 August 2017
Author: Daniel Puddicombe
Demand for used cars declined in the second quarter of 2017, new figures have suggested.
According to data released by the Society of Motor Manufacturers and Traders (SMMT), 1,832,400 used cars changed hands in the period, a drop of 13.5% compared with the same quarter last year.
The drop in transactions comes on the back of a record 2016 and turbulence in the new car market caused by the new Vehicle Excise Duty (VED) regime coming into force in April and economic uncertainty.
Figures for the first half of 2017 show a slightly rosier picture, however, with a 5.1% year-on-year decline to 3,966,356 sales, which is in line with the new car market, the SMMT said.
Superminis were the most popular used buys in Q2, with sales accounting for a third (32.7%) of the market, followed by the small car market. According to the SMMT, only two segments experienced growth, with the city car and SUV markets increasing by 5.7% and 3.5% respectively, which is said to also echo the trend in the new car market.
Black was the most popular colour choice for used buyers with 384,222 units changing hands in the second quarter of the year, followed by silver (366,194) and blue (317,479).
Some things never change though, whether it is in the new or used market - the Ford Fiesta topped the charts in Q2, with 83,222 units finding new homes, followed by the Ford Focus (74,477) and Vauxhall Corsa (72,341).
"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," said Mike Hawes, SMMT chief executive."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."