UK used car market grows as electric vehicle sales rise 23%

The UK used car market recorded its second consecutive quarter of growth in Q3 2026, with battery electric vehicle (BEV) transactions increasing by 23.2% as more second-hand buyers make the switch to electric.

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), a total of 2,030,619 used cars changed hands between July and September, representing a 0.5% increase compared with the same period last year and the strongest third quarter since 2021.

Year-to-date transactions increased by 0.3% to 6,056,169 vehicles, marking the best performance for the first nine months of the year since 2019.

Battery electric car transactions rose by 23.2% to 97,625 units during the quarter, increasing their share of the used market to 4.8%, up from 3.9% a year earlier.

This means almost one in 20 used car buyers now chooses an electric vehicle, reflecting the growing availability of second-hand models as investment in new EVs filters through to the used market.

During the first nine months of 2026, used BEV transactions increased by 39.6% to 295,524 units.

Hybrid electric vehicles (HEVs) also recorded strong growth, with transactions rising 25.9% to 135,204 units, increasing their market share to 6.7%.

However, plug-in hybrid transactions declined by 13.3% to 20,911 units, representing 1.0% of the market.

Petrol remained the most popular fuel type, accounting for 56.6% of transactions, with 1,148,576 vehicles changing hands. Diesel sales fell by 5.3% to 623,354 units, representing a 30.7% market share.

Overall, petrol and diesel vehicles accounted for 87.5% of used car transactions, down from 89.5% in Q3 2025.

Despite the continued growth in used EV demand, the SMMT warned that the transition depends on a healthy new car market and greater support for electric vehicle adoption.

The organisation highlighted concerns that manufacturer discounting to meet Zero Emission Vehicle (ZEV) Mandate targets is placing pressure on trade-in values, potentially discouraging vehicle replacement and slowing the supply of cars into the second-hand market.

Mike Hawes, Chief Executive of the SMMT, said: “Another quarter of growth means Britain’s used car market remains on course for its best year since the Covid-19 pandemic.

“Long-term investment in new models is broadening choice for used car buyers, while growth in new EVs is driving a surge in second-hand uptake.

“To sustain this progress and make zero emission mobility possible for all motorists, the new car market must remain strong, underpinned by measures that boost EV demand – including affordable and widely accessible charging infrastructure and compelling fiscal incentives.”

Ian Plummer, Chief Customer Officer at Autotrader, said the figures demonstrated the resilience of the used car market despite continued economic uncertainty and pressure on household finances.

“Economic turbulence hasn’t put the need for a car on hold. The strongest third quarter since 2021, and the best year-to-date performance since before the pandemic underline the used market’s resilience despite continued pressure on household budgets.”

Plummer highlighted particularly strong momentum in the used electric vehicle market, with Autotrader’s latest figures suggesting demand is accelerating further.

“Our latest data shows used electric retail sales rose 56% year on year in October, accounting for one in ten used retail sales tracked on Autotrader – and around one in four of all sub five-year-old cars.

“With an ever-growing choice reaching second-hand buyers, and EVs the only fuel type recording year-on-year price growth, electric is becoming an increasingly important retail opportunity.”