Used Hybrids Continue Their Charge Up The Market
- November 14, 2019
- Posted by: John Swift
- Category: Automotive Industry
Dealers still wary of stocking second-hand hybrids are missing out on sales opportunities with the latest Q3 data showing demand accelerating into top gear as they recorded growth of 13% in the three month period.
Figures from the Society of Motor Manufacturers and Traders show a healthy used car market in Q3 with year-on-year sales up by almost 20,000 and comfortably breaking the two million mark. The trade enjoyed growth of nearly one per cent, reversing nine consecutive quarters of decline and while the January-September total was slowed a little by a slightly weaker final month it still breaks the six million mark.
But it was the performance by PHEVs and hybrids which stands out. Better availability as they increasingly trickle down from the new car sector helped propel growth of 13% showing which way the wind is blowing even if overall numbers of 37,500 are insignificant compared to the 860,000 diesels changing hands. Adding both kinds of hybrids increases their market share YOY from 1.6 to 1.8%.
Now the trade says the government should get behind this demand and give financial incentives to buyers in the second-hand sector to switch to the cleaner powertrains.
Mike Hawes, SMMT Chief Executive, said,
“This growth, following a prolonged period of decline, is encouraging and it’s great to see a growing appetite for plug-in and hybrid models as they start to filter down to the used market. However, ongoing economic uncertainty and growing confusion over local clean air zones make it difficult to predict the future. To make meaningful environmental gains, we need to get more of the latest, lowest emitting cars on to our roads replacing older ones quickly – and that means delivering the right conditions and policies to give new and used buyers confidence to invest in the vehicles that best suit their driving needs and budgets.”
Growing Appetite For Plug-Ins and Hybrids
His comments were backed by Ian Plummer, Commercial Director at Auto Trader who said:
“Despite the lack of a compelling narrative or any meaningful financial incentives for consumers to make the switch from fossil to electric, used alternatively fuelled sales recorded another strong performance over the last quarter. We’re seeing a similar picture on our marketplace where searches for pure electric vehicles have increased 59% since October 2018. What’s more, this month the Renault ZOE is both the fastest and second fastest selling used car in the UK, the first time a pure EV has achieved the ‘one-two’.
“In case there were any doubts, there is clearly a growing market for second-hand low emission vehicles. However, whilst AFVs undoubtedly represent an exciting opportunity for retailers, the biggest challenge to consumer adoption may no longer be the traditional perceived barriers to entry, such as cost and infrastructure, but rather a matter of long-term supply and demand for affordable nearly new or used models.”