Motorists are increasingly turning to the used car market with consumer confidence under pressure and new car price inflation.
That’s the view of Gaurav Jain, commercial director at Carwow, commenting on the release of used car sales figures by the Society of Motor Manufacturers today, who said: “The high level of demand for used cars in Q1 is, in part, a consequence of persistent new car price inflation.
WOver the past five years new car RRPs have increased 35%, with one in four new cars configured on Carwow with RRPs of £40,000+ in 2024. At the same time, customer budgets have broadly remained flat, driving increased interest in used cars. ”
James Wilson, COO of used car marketplace Motorway, said consumer confidence remains under pressure and this was also driving buyers to the used car market.
“The latest used-car sales figures show that drivers continue to turn to the used market for better value and greater choice.
“We’ve seen a continued increase in sales through our marketplace, and consistent demand from dealers looking to stock their forecourt.
We’re seeing lower emission vehicles cement their place as the fastest-growing segment in the used market, with a 66% YoY leap in EV and hybrid sales volumes.
“As more second-hand EVs become available and prices continue to fall to meet demand, we’re entering a new phase where electric becomes a realistic and attractive option for more buyers.”
Ian Plummer, Auto Trader commercial director, also commented on the strong used car performance in the first quarter.
“The used car market carried some real momentum into the new year off the back of a very strong 2024, and it’s gathered even greater pace over the last few months despite further political and economic turbulence.
“Although the industry will face some headwinds over the coming months, I’ve no doubt the market will continue to demonstrate its huge resilience and may well already be on track to grow beyond our earlier prediction of 7.7 million sales this year.
“The quarter saw another impressive growth spurt for the maturing used electric market, as more stock, more choice, and greater affordability than ever fuelled consumer appetite.”