SMMT Update – Used car choice at risk of double fiscal whammy
Growth in the used car market is good news given it is where most drivers buy their next vehicle – but their choice ultimately depends on thriving new car demand. SMMT’s latest data is positive all round, therefore, showing more than two million used cars changed hands between July and September – representing the highest Q3 volume since 2021 with BEV transactions reaching a record 4.0% share.
Ongoing recovery in the new car market means almost 100,000 second-hand buyers have been able to snap up cars less than a year old this year. These nearly-new purchases help drive business activity and economic growth while ensuring consumer access to more affordable, increasingly zero emission used cars across the country.
This progress is facing a double whammy, however, with government plans to end Employee Car Ownership Schemes and reports of a pay-per-mile tax on EV motoring in the forthcoming Budget. These measures would stifle both demand and the supply of new cars, while cutting half a billion pounds annually from Treasury income. This is, evidently, a counterproductive approach just as government seeks to prioritise growth and manufacturers are charged with ramping up EV sales.
UK Automotive can be a driver of many government and societal missions and, as this year’s Remembrance commemorations served to remind us, that includes ongoing support to the Armed Forces community. Veterans are already widely deployed across the automotive sector, as they offer highly relevant, high-value skills and expertise, and I would urge more companies to explore whether this talent pool would support their own business. Initiatives such as government’s Defence Employer Recognition Scheme provides the opportunity to do so, while service leavers themselves considering an automotive career are encouraged to read the Veterans’ Automotive Career Guide.
There are indeed many different crucial areas in which industry and government benefit from collaborative dialogue, and we were delighted to confirm this week that The Rt Hon Peter Kyle MP, secretary of state for business and trade, and president of the Board of Trade, will deliver a keynote to more than 1,000 people from across industry, government and the media at this year’s SMMT Annual Dinner.
Finally, we were deeply saddened to hear of the passing of automotive journalist and TV presenter turned campaigner Quentin Willson. As a truly passionate champion of the industry, Quentin was also an early advocate of electric vehicles – the benefits of which he lately championed with relish to government, the media and consumers. He will be greatly missed and our thoughts are with his family and friends.