UK’s used EV market enjoys record uptake in Q3

The UK’s used car market continued its upward trajectory in the third quarter of 2025, rising 2.8% to more than two million transactions, the strongest performance for the period since 2021. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), the total of 2,021,265 used car sales marks an eleventh consecutive quarter of growth, underpinned by improved new car supply feeding into the second-hand market.

Battery electric vehicles (BEVs) were the standout performers, with sales soaring by 44.4% to 80,614 units. The surge pushed their share of the market to a record 4.0%, meaning one in every 25 used car buyers chose to go electric over the summer. The trend highlights the growing appeal of zero-emission motoring as more affordable, nearly new EVs reach forecourts.

Hybrid models also saw robust demand. Transactions of hybrid electric vehicles (HEVs) climbed 30.0% to 107,727 units, while plug-in hybrid sales edged up 2.0% to 23,480. Petrol vehicles continued to dominate the used market, up 1.9% to 1,145,148 units, while diesel sales fell by 2.8% to 658,664. Combined, petrol and diesel cars still accounted for 89.2% of all transactions, though that share continues to decline year on year.

Nearly 100,000 cars under a year old changed hands in the quarter, providing a vital source of high-quality used stock. Many of these vehicles came via Employee Car Ownership Schemes (ECOS), which play a key role in keeping the supply of newer, lower-emission cars flowing. However, the SMMT warned that government plans to apply company car tax to ECOS vehicles could have damaging effects on both the market and the broader economy.

According to industry analysis, ending ECOS exemptions could cut new car registrations by around 80,000 units a year, threaten 5,000 manufacturing jobs, and cost the Treasury around £500 million in lost tax receipts — outweighing any potential gains from the proposed levy. Around 60,000 workers would also lose access to company-funded vehicles, restricting mobility and slowing the shift to cleaner transport.

“However, overall consumer choice and affordability are at risk if the government scraps Employee Car Ownership Schemes. Britain needs fiscal policy that promotes rather than prevents economic growth, social mobility and decarbonisation.”