Press release

SMMT used car transactions | Q3 2019

Ian Plummer, Auto Trader's commercial director, provides his view on the latest used car transactions, and what lies ahead for the market. 

At a time when the new car market is struggling, it’s reassuring to see such a solid performance in used cars. At nearly four time times the size of the new car market and with the potential for greater margins, the used market remains the biggest opportunity for retailers in the closing months of 2019.

“Whilst the current economic climate isn’t driving consumers to delay their next car purchase, it is affecting their decision between new or used. Indeed, rather than the average transaction cycle of 3.4 years extending to four, as Brexit and election anxieties persist we're seeing people less willing to risk stretching their budget to a new car and instead reverting to what may be perceived as a better value and lower cost alternative. 

“These same considerations are also affecting their choice in terms of fuel type. As a consequence of the demonisation of diesel, we’ve seen used petrol values grow at a faster rate. As a result, on a like for like basis, buyers are now often viewing diesels as better value for money.

 “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.”

Discover what we are doing to keep #consumers engaged with our platformin order to help #cardealers build their #salespipeline in our latest blog post from our COO Catherine Faiers - https://t.co/t4Sv4m9YjB #cornonavirus #consumerbehaviour https://t.co/7LTGzvyJSN
Join us for an Auto Trader Insights webinar where we will be discussing the current trends we are seeing across the #automotive market as we continue to navigate our way through the #coronavirus outbreak. https://t.co/AxxdZtR7i0 https://t.co/uzTeeCtzHm
On yesterday's customer webinar we highlighted that whilst consumers might not be able to visit dealerships, a variety of metrics indicate there's still consumer demand. If you missed the session, which included @ASE_Global's @mikejonesase, catch up here https://t.co/7qLr0Tz3hT https://t.co/LBGALeheWT
We brought forward the launch of our new #marketintelligence tool, AT Market Insight, to ensure #cardealers can keep up with the changing market conditions in these turbulent times. Discover how you can use this new tool now in our latest blog post. https://t.co/50K8rBG2Xi https://t.co/Cc3rZFAk8f
30 minutes left until today's webinar! Register now to hear the latest advice on what options #cardealers have during #coronavirus. Even if you cant make it we will send you the recording https://t.co/vr0dwQTD3J https://t.co/VuIea3MFoK
Have you signed up to our next weekly webinar? We'll be talking through what options #cardealers have amidst the #coronavirus. Tune in tomorrow at 10am and if you can't make it, sign up and we will send you the recording. https://t.co/vr0dwQTD3J https://t.co/omXRjB386q
Last week our #Data & #Insight Director, @therickw joined our webinar to talk retailers through key market observations he had made. Well, we’ve invited him back to share another update to see if the story has changed. https://t.co/KcGC6O2nom https://t.co/AcvcSqSpo1
Great to see people coming up with innovative ways of keeping busy during #lockdown... https://t.co/sv7G0osaLd
Start the week off right with @MarcThornboroug's latest tips on practical things retailers can be doing now to help build that #salespipeline whilst #workingremotely https://t.co/NKxMkK5qbv https://t.co/xpYaTQbWfo
In next week's webinar, we'll be asking our expert panel 'What options do retailers have amidst COVID-19?' Discussions will include furlough for employees & funding for self-employed retailers. Submit your questions when you register: https://t.co/fifT2NvFOB https://t.co/u6YMY1HQB4

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