Market Trends of United Kingdom Used Car Industry
Online Segment Expected to be the Fastest Growing Segment
- The increasing trend of online shopping for used cars in the United Kingdom can be attributed to several key factors. The convenience and accessibility offered by online platforms have revolutionized the car-buying experience. Consumers can now browse various used cars, compare prices, and gather detailed information about each vehicle from their homes. This shift toward digital platforms aligns with the broader trend of online shopping preferences, providing a hassle-free and time-efficient alternative to traditional showroom visits.
- There were 66.33 million internet users in the United Kingdom at the start of 2024, when internet penetration stood at 97.8%.
- A total of 88.86 million cellular mobile connections were active in the United Kingdom in early 2024, which is equivalent to 131.0% of the total population.
- Moreover, the transparency and abundance of online information play a crucial role in the online used car shopping surge. Buyers can access detailed vehicle histories, reviews, and specifications, empowering them to make informed decisions. The ability to research extensively before making a purchase instills confidence in consumers, especially when dealing with the significant investment associated with buying a used car. Online platforms often provide comprehensive details about a vehicle's condition, mileage, and service history, fostering trust between buyers and sellers.
- Moreover, online platforms also enable users to explore upcoming or ongoing used car auctions, expanding their options and providing a dynamic marketplace. This convergence of online and offline elements creates a holistic approach to car shopping, catering to modern consumers' evolving preferences and expectations in the United Kingdom.
- Hence, due to the increasing popularity of online retailing, the online sales segment is expected to see substantial growth during the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Electric Vehicle Type Expected to Witness Significant Growth Rate During the Forecast Period
- Used electric vehicle prices have remained affordable for consumers in recent years, making them a significant driving factor in used electric car sales. According to price analysis over the last few years, used electric vehicles have been less expensive than hybrid vehicles. In the luxury vehicle segment, electric vehicle characteristics such as technology-driven performance provide a status symbol and support sustainability, resulting in significant volume demand for used EVs.
- As per the SMMT 2023 report, sales of used battery electric vehicles (BEVs) soared by 81.8%, accounting for a record 1.7% market share. The increase equates to an additional 72,583 transactions compared with the same period in 2022. This development indicates sustained growth in the new car market and improving availability.
- The robust performance also extended to hybrid and plug-in electric cars, which saw sales climbing by 40.0% and 25.1%, respectively. Collectively, used electrified vehicles captured a 5.6% market share, marking an increase from 4.0% in 2022.
- However, the growth of the used EV market in the United Kingdom faces challenges such as a limited supply of used EVs, which leads to higher prices compared to traditional used cars.
- Overall, ongoing advancements in battery technology and the expansion of charging infrastructure are likely to further boost the appeal of used EVs in the United Kingdom.
