EVs charge up used car market with record sales

The UK’s used car market remained broadly stable in the first quarter of 2026, with electric vehicles driving record levels of demand despite wider economic uncertainty, according to the latest figures from the Society of Motor Manufacturers and Traders.

A total of 2,016,232 used vehicles changed hands during Q1, down just -0.2% year-on-year, ending a 12-quarter run of growth. The performance reflected a weaker March, when transactions fell -2.3% compared with an exceptionally strong March 2025.

Battery electric vehicles (BEVs) were the standout performers, with transactions rising 32.0% to 86,943 units, a record volume and market share for the sector. BEVs accounted for 4.3% of all used car sales in the quarter, up from around 3.3% a year earlier.

The growth reflects increasing availability of used EVs entering the market as manufacturers continue to expand their zero-emission line-ups, supported by discounts and government incentives in the new car sector.

Hybrid electric vehicles (HEVs) also saw strong growth, with sales rising 27.6% to 128,039 units, giving hybrids a 6.4% market share. Plug-in hybrid vehicles (PHEVs), however, declined by -8.9% to 20,021 units, representing 1.0% of the market.

Combined, electrified vehicles accounted for 11.7% of all used car transactions during the quarter.

Petrol vehicles remained the dominant fuel type despite a slight decline in sales of -0.6% to 1,147,969 units, while diesel demand continued to fall, down -6.7% to 629,987 units as supply from the new car market reduced. Conventional petrol and diesel vehicles still represented 88.2% of all used car sales.

Superminis remained the UK’s most popular used vehicle segment despite a -1.0% decline in sales, accounting for 648,229 transactions and 32.2% of the market. Lower medium vehicles followed with 546,249 units sold, up 0.2%, while dual-purpose vehicles posted the strongest growth, rising 5.4% to 357,295 units.

Black remained the UK’s most popular used car colour, followed by grey and white, with white overtaking blue to return to the top three. Cream recorded the fastest growth in popularity, up 11.7%, although volumes remained low.

The figures come as the average age of the UK vehicle parc reaches a record 9.7 years, up from eight years in 2019, underlining the importance of a healthy new car market to support used vehicle supply — particularly for EVs.

“Better news is the record demand for used electric vehicles, as growing choice from manufacturers feeds through into the second-hand market. High fuel prices, given the conflict in Iran, may increase demand even further, but to maintain this momentum, every fiscal and policy lever must be pulled to ensure a healthy new car market that delivers the zero emission vehicles in volume to flow through to the used market.”

Matas Buzelis, motoring expert at carVertical, said the market remained cautious as consumers balanced affordability pressures against changing motoring trends.

“Falling used car sales are another sign that drivers are feeling the squeeze,” he said. “Big purchases are being delayed as households deal with rising living costs, while volatile fuel prices are adding to the uncertainty.

“At the same time, there’s a shift in behaviour, with more drivers exploring electric vehicles as a way to reduce running costs. However, many are still taking time before making the switch, especially as home energy costs are expected to rise dramatically over the summer.”

He added that while more used cars were entering the market following the plate change, affordability and finance costs remained key barriers for many consumers.

“Until fuel prices stabilise and confidence improves, the market is likely to remain cautious, with buyers holding back and negotiating harder when they do decide to purchase,” he said.