UK used car market returns to growth as EV sales rise 67%

The UK used car market returned to growth in the second quarter of 2026, with more than two million vehicles changing hands as demand for second-hand battery electric vehicles (BEVs) accelerated sharply, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 2,009,318 used cars changed hands between April and June, up 0.7% from 1,996,116 during the same period last year. It was the first time since 2021 that second-quarter transactions have exceeded two million, leaving volumes just 1.2% below pre-pandemic levels.

The increase helped offset a marginal decline in the first quarter, with 4,025,550 used cars changing hands during the first half of 2026, representing year-to-date growth of 0.2%.

Used EV transactions jump 67%

Electrification provided the strongest growth story during the quarter, with used BEV transactions rising 67.0% year-on-year to 110,761 units – the strongest quarterly increase since the first quarter of 2024.

BEVs accounted for a record 5.5% of all used car transactions during Q2, up significantly from 3.3% a year earlier. The SMMT said the increase reflected the growing choice of electric models becoming available to second-hand buyers as vehicles increasingly filter through from the new car market.

Growth was particularly strong during April, when used BEV transactions increased 110.9% year-on-year, followed by a 57.6% increase in May and 37.8% growth in June. The SMMT noted that the acceleration coincided with higher fuel prices linked to the Middle East conflict, while comparisons were also affected by weaker performance in the same period last year following changes to Vehicle Excise Duty.

Demand for used hybrid electric vehicles also increased strongly, with transactions rising 31.2% to 130,825 units. Their share of the market increased from 5.0% to 6.5%.

Plug-in hybrids moved in the opposite direction, however, with transactions falling 6.8% to 22,856 units and their market share edging down from 1.2% to 1.1%.

Petrol and diesel still dominate used market

Despite the rapid growth in electrified vehicles, petrol and diesel cars continued to account for the overwhelming majority of second-hand transactions.

Petrol remained the UK’s most popular used fuel type, although transactions fell 1.2% to 1,121,243 units. Diesel sales declined more sharply, down 7.2% to 620,045, reflecting the reduced supply of new diesel vehicles entering the market in recent years.

Combined, petrol and diesel represented 86.7% of all used car transactions during the quarter, underlining the scale of the transition still required as the automotive sector moves towards zero-emission vehicles.

Superminis remained Britain’s most popular used car segment, accounting for 31.7% of demand, with volumes increasing 0.2%. Lower medium cars represented a further 26.6% of transactions, while dual-purpose vehicles delivered the strongest growth, rising 7.4% to take 17.7% of the market.

“A return to growth is good news for motorists and the wider automotive sector, with sales of used EVs rising particularly strongly as more choice reaches more buyers,” he said.

“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.”

The figures underline the increasingly important role of the used market in broadening access to electric vehicles. With BEVs now accounting for more than one in 18 second-hand transactions, greater volumes of vehicles entering the used sector could help make electric motoring accessible to a wider range of consumers as the UK’s automotive market continues its transition.