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Used car sales soar but diverse product offer is key to dealer success
The UK used car market has continued to show strong growth in Q3 – with the seventh successive quarter of year-on-year growth. Figures from the Society of Motor Manufacturers and Traders (SMMT) showed a 4.3% increase in used car transactions between July and September 2024 compared with the same period in 2023 – an addition of 81,651 transactions.
In the year to end of September, used car transactions rose 6%, to almost 5.9m compared to nearly 5.6m in 2023. The growth was described by SMMT chief executive Mike Hawes as “good news and driven by an outstanding range of desirable and, increasingly, zero emission vehicles to suit every budget”.
Used EV sales skyrocket
The biggest increase over the three months from July was in the sale of used battery electric vehicles (BEVs), which jumped 57% to more than 53,000. Plug-in hybrid and hybrid sales were also up, 29% and 36% respectively, but the majority of the market still belongs to petrol vehicles, up 5.7% to more than 1.1m, and diesel, down 3.9% to 680,000 – accounting for almost 92% of total used car transactions from July to September.
The figures will be welcome news for an automotive industry still recovering from the impact of the COVID-19 pandemic as well as global supply-chain issues. In 2019, UK used car transactions were at a near peak of almost 8m for the full year. This fell to 6.7m in 2020 and by 2023 had partially recovered to 7.2m.
If Q4 2024 continues the upward trend shown throughout the year, maintaining the 6% increase on 2023, transactions should reach over 7.6m for the full 12 months – the highest since before the pandemic.
Vehicle aftersales help dealers boost revenue
Despite the positive sales trend, dealers are grappling with a wide range of macroeconomic issues impacting their businesses, including high interest rates and changes to employer national insurance contributions announced in Government’s Autumn Statement, to name just two.
Successful dealerships must find ways to increase revenue and profit by diversifying their offering and establishing a reliable additional income stream, especially during difficult periods. Providing customers with high-quality vehicle warranty and add-on insurance products is a great way to increase satisfaction rates, boost retention and improve your bottom line.
Car Care Plan is one of the industry’s leading providers of award-winning warranty and add-on insurance products and has been the trusted partner for many of the most well-recognised vehicle manufacturer and retailer brands for over 48 years. We work with dealer and OEM partners to provide a wide range of high-quality products as part of a successful, proactive retention strategy. These include our award winning Warranty programmes and Defaqto five-star rated insurance products, such as Tyre Insurance, Cosmetic Repair Insurance, Alloy Wheel Repair Insurance, and Service Plan.
Ready to boost your dealership revenue? Get in touch with Car Care Plan today.