21 Mar 2018
In a recent car scrappage blog, we looked at how different manufacturers are encouraging car owners to trade in their old vehicles for a discount on a new car model. It is believed regardless of the attractive switch schemes introduced by automobile manufacturers, UK residents are opting for second-hand cars. The Finance and leasing association reveal that second-hand cars bought via finance increased by 7% in the month of June 2017 when compared to the same period last year. The car finance schemes at dealership are becoming popular for car buyers. As they take advantage of the financing deals to purchase their next vehicle. The 12 month period leading to June last year, compared with the same period in the previous year, the FLA reported the sale of 1.2 million cars as opposed to 1 million in the previous period. The Society of Motor Manufacturers and Traders (SMMT) reported a marginal increase in the sale of used cars in the first 9 months of 2017 when compared to 2016. In the first nine months of 2017, a total of 6.3 million second-hand vehicles were sold with a 0.01% increase when compared with the previous year.
The most popular used car segment in 2017
The Supersonic is the most popular car segment among the used cars sold as they took about a third of the market with a 33.6% of the total sales. The second most popular type of used car sold last year was the SUV with a 1.3% growth when compared with the previous year,
The top colours of used cars sold in 2017
Cars are finished in a variety of colours and users have sentiments regarding darker or lighter shades of cars. The SMMT reveals that silver remains UK’s most popular used car colour. Black is the second most widely used car colour in 2017 which is ably followed by blue, grey and white respectively. In quarter 3 of 2017, a total of 446, 471 used cars were sold in the UK. This is closely followed by 431,034 (black cars), 379,748 (blue cars), 263,516 (Grey cars) and 222,315 (white cars) respectively.
The availability of alternative fuelled hybrid and electric cars
The demand for second hand vehicles is gaining more popularity due to the presence of nitrogen fuelled hybrid and electric cars. These cars are now becoming available in the second-hand market and users are showing increasing interest in these hybrid models. In 2017, the purchase of these vehicles rose by 17%, approximately 25,196 hybrid units. On the other hand, complete electric vehicles gained great popularity as sales went up by 66. 4%. On the contrary, sales of petrol cars fell by 6.5%.
The presence of hybrid fuel and electric vehicles within the second-hand market and consumers cost saving measures have contributed to more demand for used cars. Despite incentives or discounts introduced by car manufacturers when consumers scrap their old cars or participate in the trade-in scheme, these buyers seem to prefer the cheaper used cars to expensive new models. At the end, cost always has an impact on the popularity of new or used cars