Used car market returns to growth

The UK’s used car market returned to growth in the second quarter of the year, with sales surpassing two million units for the first Q2 since 2021, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT) which also show a strong rise in demand for EVs.

Volumes went ,up 0.7% as 2,009,318 vehicles changed hands, with transactions just -1.2% below pre-pandemic levels. SMMT analysis indicated this helped offset the marginal decline recorded in Q1, delivering overall market growth of 0.2% year to date, with 4,025,550 transactions.

In the Q2 period, battery electric car transactions rose 67% to 110,761 units, the strongest quarterly growth since Q1 2024.

Demand rose particularly sharply in April and May (up 110.9% and 57.6% respectively compared with 37.8% in June), coinciding with fuel price rises linked to the Middle East conflict and set against a relatively weak performance last year when VED changes came into effect.

Between April and June, more than one in 18 buyers (5.5%) made the switch, up from around one in 30 (3.3%) a year ago, reflecting the growing choice of models entering the market.

Hybrid electric vehicle sales also rose, up 31.2% to 130,825 units, increasing their market share to 6.5% from 5.0% in the same period last year. Plug-in hybrid transactions, meanwhile, fell by -6.8% to 22,856 units, accounting for 1.1% of overall demand, down from 1.2% in 2025.

“With fuel prices remaining unpredictable and the cost of living putting pressure on household budgets, motorists are becoming much more conscious of running costs when choosing their next vehicle. “Price still remains one of the biggest factors for anyone buying a car. A year ago, many drivers may have looked at electric cars and decided they were simply too expensive. That picture is changing.”

The AA’s latest Used Car Index shows prices for the UK’s most searched-for used EVs have fallen by 10% in the past 12 months, putting models such as the Nissan Leaf, Renault Zoe and Hyundai Ioniq within reach of far more buyers. “As lower prices combine with reduced running costs, more buyers are feeling confident about making the switch,” Hosking said. Consumer choices

The SMMT data shows petrol remained the most popular fuel type, despite transactions falling by -1.2% to 1,121,243, while diesel sales continued to decline, down -7.2% to 620,045, reflecting shorter supply from the new car market. Even so, almost nine in 10 (86.7%) buyers still chose conventionally fuelled cars in the quarter.

Superminis remained Britain’s best-selling used car type, accounting for 31.7% of demand, with volumes rising 0.2%. The lower medium segment followed, with a 26.6% market share and a 0.2% increase. Dual purpose cars recorded the strongest growth, up 7.4% to secure 17.7% of overall sales.

Hosking predicted: “In the second half of 2026, we should continue to see the used car market hold up. A stronger new car market over the past 18–24 months is now feeding through to the used sector, increasing availability and giving buyers more choice, especially as drivers become increasingly focused on value for money and running costs. “Buyers and sellers alike should expect to see more room for haggling, as the supply of second-hand vehicles increases.”

As the used market is where most people buy their cars, plentiful and affordable supply is vital, however, increasingly unrealistic targets in the new car market risk constraining that supply and pushing up costs. Urgent regulatory reform is needed to deliver a transition that works for every driver.”