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The number of UK used car market transactions fell by 8.5% year-on-year in 2022, according to the Society of Motor Manufacturers and Traders (SMMT).
The total of 6,890,777 transactions was also 13.2% down on pre-pandemic 2019, with the SMMT blaming a shortage of new cars, primarily due to the global semiconductor crisis, restricting stock entering the used market.
There was some more positive news from the final quarter of the year, when although transactions were still down year-on-year by 4.3%, this was still an improvement on Q2 (down 18.8%), and Q3 (down 12.2%).
There was also a better performance from EVs, which for the whole year saw transactions up by 37.5% - although these still accounted for only 1% of the overall market.
Hybrid car transactions were up by 8.6%, and plug-in hybrids up by 3.6%, but combined electrified vehicles still only took a 4.1% market share, while petrol and diesel cars - although down by 7.7% and 11.8% respectively - till took by far the lion's share of sales.
SMMT chief executive Mike Hawes said: "While the market headlines are negative, and reflective of the squeeze on new car supply last year, record electrified vehicle uptake is a bright spot and demonstrates a growing appetite for these models.
"With new car registrations growth expected this year, more of the latest low and zero emission models should become available to second owners.
"Accelerating uptake is key and will be dependent on drivers being assured of a positive ownership experience. This means ensuring charging infrastructure keeps pace with demand as more new and used car buyers make the switch to zero emission motoring than ever before."
Giving his reaction, AA Cars director Mark Oakley said: "The sharp drop-off in new car production at the start of 2022 initially boosted used car sales, but by the end of the year it had become a burden rather than a boon.
"With fewer nearly new cars making their way onto the second-hand market for much of 2022, dealers simply didn't have as much stock to sell. In all, 640,179 fewer used vehicles changed hands in 2022 compared to 2021.
"In addition, the weakening economy put the brakes on demand. Double-digit inflation squeezed disposable incomes and made some would-be buyers reluctant to commit to big ticket purchases like a car.
"While the second-hand car market typically performs better than the new car market when times are tough - thanks to the wide choice and compelling value it offers - rising interest rates and darkening economic clouds have pegged back demand.
"Nevertheless, value is improving. Data from the AA Cars Used Car Index showed that price rises for the most popular used models slowed sharply in the final quarter of 2022."
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