Used car sales rack up two quarters of declines

Sales of used cars have fallen for the second quarter running, suggesting second-hand sales could be emulating reversals in the market for new vehicles.

Between July and September, 2,102,078 second-hand cars changed hands – a fall of 2.1%, figures from trade body SMMT showed. The decline in the third quarter followed falling sales in the second quarter.

Despite recent declines the used-car market is holding up far better than sales of new cars which have fallen for seven months in a row as worries about the economy and a clampdown on diesel vehicles dented business. New car registrations fell 12.2% from a year earlier in October and diesel sales fell by 30% after London introduced a pollution charge on older vehicles following a scandal over emissions.

For the year-to-date, the market for used cars remained at record levels helped by a booming first quarter. Sales were 6.3m in the first nine months of 2017, up 0.1% from a year earlier.

Sales of used petrol cars fell 6.5% in the third quarter but diesel sales rose 4.2% as buyers unperturbed by talk of bans and higher taxes took advantage of falling prices. By contrast, sales of cleaner electric and hybrid cars rose sharply as they came on to the second-hand market.

Mike Hawes, SMMT's chief executive, said: "The used car sector remains in good health as motorists take advantage of some great deals on cars. However, as demand in the new car market cools, used car sales normally follow suit."

With the budget approaching on 22 November, Hawes called on the government to increase economic and political certainty in order to boost buyer confidence.