Figures from the car business show that sales of used cars dropped sharply last year because fewer used models came on the market.
Because of Covid, there were not enough parts to make new cars, so people kept their old cars longer while they waited to upgrade.
According to the Society of Motor Manufacturers and Traders, 6.9 million used cars were traded, which is down from 7.5 million in 2021. (SMMT).
It did say, though, that things were getting better.
The SMMT also said that sales of used electric cars had gone against the trend.
During the worst of the pandemic, car dealerships and assembly lines were shut down.
Then, as the world started to open up, there was a shortage of computer chips, which are often used in modern cars.
This hurt sales of new cars, which fell to their lowest level in 30 years in 2022.
The lack of cars had an effect on the much bigger market for used cars. Because of this, the prices of used cars shot up in 2021 and have only just started to level off.
Autotrader says that the average price of a used Fiat Panda was £5,765 in January, which is up 18.7% from a year ago. The average price of a used Toyota Avensis was £5,825 in January, which is up 17.9% from a year ago.
But a used Suzuki Vitara cost £14,786, which was 9% less than before, and a used Skoda Yeti cost £9,893, which was 9.4% less than before.
Theo Leggett’s Analysis (Business Correspondent)
Last year, more than 6.5 million used cars changed hands. Even though that’s less than in 2021 and much less than before the pandemic, it’s still a big number.
People in this country need cars to get around, especially those who live in rural areas where public transportation is limited.
Some people say that the recent wave of strikes has made them less likely to use public transportation.
People with low incomes who need cheap transportation have had a hard time because of the shortage.
It has caused the prices of many popular models to go up at a time when the overall cost of living has been going up quickly.
“Gaining hunger”
Even though overall sales of used cars went down last year, the SMMT said that more used electric cars changed hands.
Used pure electric cars found new owners at a record rate of 37.5%, and sales of used hybrids and plug-in hybrids went up by 8.6% and 3.6%, respectively.
Even though electric cars only make up a small part of the used car market, Mike Hawes, the head of the SMMT, said that the number of people buying used electric cars shows “a growing appetite for these models.”
“With more new cars being bought this year, more of the newest models with low or no emissions should become available to second owners,” he said.
The SMMT says that the Ford Fiesta was the most popular used car sold in 2022, followed by the Vauxhall Corsa and the Volkswagen Golf.
Black was the most popular colour, followed by blue and then grey.
But the group said that some buyers had been more daring. During the year, 4,461 pinks, 6,708 turquoise, and 18,658 bronze used cars were sold.
