The UK’s used car market grew 6.5% to almost two million units in the first quarter of 2024 – the strongest start to a year since pre-pandemic 2019.

More than one in five cars sold worldwide this year is expected to be electric

Sales have now grown for 16 months running on the back of recovering supply in the new car market, although the Society of Motor Manufacturers and Traders (SMMT) spotlighted that Q1 transactions remain 2.6% below pre-Covid levels.

Sales of battery electric vehicles (BEVs) eclipsed the overall market performance – rising by more than two-thirds (71.0%) to 41,505 in Q1 and making them the fastest-growing powertrain type. BEVs, which saw prices crash over 30% in 2023, also posted a record market share of 2.1% as their growing price parity with ICE cars continued to propel demand.

Hybrids (HEVs) also continued to sell in greater volumes, with 74,502 changing hands in a 49.3% rise. Plug-in hybrids (PHEVs) grew in popularity too, with sales up 42.5% to 22,065.

Sales of petrol cars rising 7.7% to 1,130,396, while diesels fell back 1.3% to 697,718. Their combined total shows the continued dominance of conventional powertrains, accounting for 92.9% (1,828,114 units) of all transactions – however, their market share shrank by just over two percentage points on Q1 2023 as more buyers move to electrified vehicles.

Superminis remained the most popular vehicle type, with 640,711 changing hands – a 7.2% increase. The lower medium segment grew by 9.2% and saw the biggest volume gain at 45,301 units. Rounding off the top three, which remains unchanged on the same period in 2023, dual purpose represented 16.0% of the market and recorded the best percentage growth with a 10.3% rise. Together, these segments accounted for three-quarters of all cars sold in the period.

At the other end of the scale, executive, luxury saloon and upper medium were the only segments to record declines, down 3.5%, 2.0% and 0.5% respectively.

The most popular car colours were unchanged from Q1 2023, with black taking pole position for the 13th quarter and equating to 21.3% of sales. Grey, the most popular new car colour, held second place but recorded the biggest growth in the top 10, up 10.7%, and blue retained third, with a 6.2% uplift in transactions. Gold and cream were the only colours in the top 20 to decline, falling by 2.5% and 0.6% respectively.

Mike Hawes, SMMT chief executive, said the reinvigorated new car market was delivering more choice and affordability for used car buyers – along with growing options to go electric.

“To enable even more drivers to enjoy the benefits of zero-emission motoring, ensuring both supply and demand remains robust is essential. Incentivising new EV uptake and investing in a charge point network that is accessible, available and affordable to all will drive the nation’s net zero transition,” he stated.

Online marketplace Carwow said the 71% rise in used EV sales, compared to the decline in sales of new ones to private buyers, indicated a growing consumer appetite for more affordable EVs.

Sally Foote, chief commercial officer at Carwow, said the increase proves that despite numerous offers currently available from manufacturers, the decline in new EV sales to private buyers is an affordability issue and the Government needs to provide incentives or reduce the VAT on new EVs to boost the market in a meaningful way if we are to reach the ZEV mandate targets.

And James Hosking, managing director of AA Cars, said the move to EVs was now well underway due to significant falls in prices of EVs and hybrids.

“Education about batteries, range and charging remains key, and dealers have a big role to play in advising consumers about the difference between electric cars and their petrol and diesel counterparts,” he added.

Finally, Philip Nothard, insight director, Cox Automotive, said the remarkable performance across the used car market in Q1 painted a promising picture for the remainder of the year.

“This positive momentum signals the used sector’s continued recovery, is a testament to the industry’s resilience and is particularly noteworthy in the context of the new car market’s ongoing challenges. It also gives us reasons to be optimistic regarding used EV adoption.

“As the economy continues to improve, these trends are expected to gain further traction. The anticipated return to a ‘push’ new car market is poised to further bolster the flow of used cars through the system, adding to the overall optimism within the used sector.”