The UK used car market has shrunk by almost 19 per cent in the second quarter of this year due to the knock-on impact of semiconductor shortages on new vehicles.
According to data published today by the Society of Motor Manufacturers and Traders (SMMT), 1.7 million second-hand transactions have taken place – down by 407,820 on last year’s levels.
May was the month that witnessed the highest decline, as deals fell by 20.9 per cent, followed by June and April, with transactions going down by 18.6 and 16.8 per cent respectively.
“It was inevitable that the squeeze on new car supply would filter through to the used market,” said SMMT chief executive Mike Hawes.
“Despite this, Britain’s used car buyers clearly have a growing appetite for the latest low and zero emission cars, and we need a thriving new car market to feed it.”
The sale of used battery-electric vehicles rose by 57 per cent, while plug-in hybrids grew by 1 per cent, maintaining a 0.9 per cent market share.
Commenting on the figures, KPMG’s UK automotive partner Chris Knight said: “Consumer demand for used cars may well drop in the coming months, but the supply landscape is such that it’s unlikely that we see major price corrections in the near term.”