Auto Finance Sponsored by Auto Finance News EVs power used car market to third year of growth Published: 16th February 2026 Share The UK’s used car market recorded its third consecutive year of growth in 2025, with transactions rising 2.2% to 7,807,872 vehicles, as improving new car supply fed through to the second-hand market and demand for electrified models surged, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). Source: SMMT Electrified vehicles were the standout performers. Sales of used battery electric vehicles (BEVs) jumped 45.7% year on year to a record 274,815 units, lifting BEVs’ market share to an all-time high of 3.5%, up from 2.5% in 2024. Plug-in hybrids (PHEVs) also grew, rising 6.3% to 88,032 transactions, while hybrids (HEVs) surged 28.6% to 407,531 units. In total, used electrified car transactions climbed 30.9% to a record 770,378 units, meaning almost one in 10 (9.9%) used cars sold in 2025 was electrified. The growth reflects expanding model choice and improving affordability, alongside growing consumer confidence in lower-emission motoring and the prospect of reduced running costs. Despite the rapid rise in EV uptake, petrol and diesel models continued to dominate, accounting for 89.9% of used car transactions. Petrol remained the most popular powertrain, edging up 1.5% to command 56.7% of the market, while diesel sales declined 3.5%, falling to 33.1% share. Mike Hawes, SMMT Chief Executive, said the figures underline both the resilience of the used car market and the growing role of electrification: “A third year of used car sales growth underscores the market’s resilience, with recovering new car demand revitalising choice and affordability – especially for EVs – in the used market. The record number of buyers making the switch signals growing confidence in zero and ultra-low emission motoring.” He added that sustaining the momentum will depend on continued strength in the new car market: “Driving the fleet renewal needed to decarbonise our roads at pace must start with ensuring a strong and sustainable new car market.” With electrified models now approaching 10% of used transactions, the SMMT said the second-hand market is becoming an increasingly important engine of the UK’s transition to cleaner mobility, widening access to EVs beyond early adopters and premium new car buyers. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsVolkswagen Group Mobility posts €3.45bn FY2025 operating result NewsAlphabet urges rethink on electric Vehicle Excise Duty NewsArval reports fleet growth to nearly 1.9m vehicles Auto Finance