Used battery electric car sales reach record volume and market share

The UK’s used car market breached two million sales in the first quarter of 2025 for the first time since 2019, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Some 2,020,990 vehicles changed hands in Q1, with sales growing by 2.7% on the same period last year, capping off nine consecutive quarters of growth.

Petrol remained the best-selling fuel type, rising 2.1% to 1,149,855 units, while diesel experienced a 3.1% decline to 679,739 units.

As a result, internal combustion engine (ICE) cars made up 90.5% of all used transactions in the quarter. However, their combined market share fell 2.4 percentage points on Q1 2024 as more buyers opted for electrified options.

Hybrids attracted record numbers of second and third owners, up 30.2% to 98,830 units, while 23,540 plug-in hybrids changed hands, up 14% on the same period last year.

Battery electric cars recorded the highest growth, increasing by 58.5% to 65,850 units and a record 3.3% share of all transactions.

Long term success, however, relies heavily on healthy demand for new electric cars, making Government incentives paramount, says the SMMT.

It argues that halving VAT on new EVs and scrapping or amending their liability to the VED expensive car supplement, alongside equalising VAT paid on public charging to domestic rates, would all help increase uptake of new cars and, in turn, promote a vibrant used market.

Mike Hawes, chief executive at the SMMT, said, “The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fuelled by a recovering new car market.

“Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch.

“Sustaining and expanding this growth, however, depends on a healthy supply of EVs from the new car market – which in turn requires fiscal incentives alongside a nationally accessible and affordable charge point network so that everyone, whatever their budget or driving needs, can benefit from zero emission motoring.”

Smaller cars remained the mainstay of demand, with superminis again the best-selling segment, accounting for almost a third (32.4%) of all used car transactions, followed by small family (lower medium) cars (27.0%).

Dual purpose models also proved popular, accounting for 16.8% of sales.

Combined, these segments represented three-quarters (76.2%) of all transactions in the period. 

Specialist sports, executive, upper medium and MPV were the only segments to record declines in Q1, down 6.1%, 3.5%, 1.6% and 0.4% respectively.

Black was the most popular colour for the 29th quarter, accounting for a fifth (21.2%) of cars sold, while grey and blue held second and third place, up 6.3% and 1.2%, respectively.

Previous best-seller silver, along with orange and gold, were the only colours within the top 20 to record declines, falling by 3.1%, 4.9% and 5.1% respectively.

James Wilson, chief operating officer at of used car marketplace Motorway, said: “We've seen a continued increase in sales through our marketplace, and consistent demand from dealers looking to stock their forecourt.

“We're seeing lower emission vehicles cement their place as the fastest-growing segment in the used market, with a 66% year-on-year leap in EV and hybrid sales volumes.

“As more second-hand EVs become available and prices continue to fall to meet demand, we're entering a new phase where electric becomes a realistic and attractive option for more buyers.” 

James Hosking, managing director of AA Cars, says that affordability remains a powerful driver, and electric vehicles are increasingly at the heart of this trend.

He added: “Our data reveals prices of the UK’s most popular used EVs and hybrids fell by 10% year-on-year in Q1, making them more accessible to a broader base of buyers.

“As more models enter the second-hand market, including newer, longer-range EVs, buyers are benefiting from increased variety and competitive price points. This is helping to fuel the continued growth of EVs in the used market.”

John Cassidy, managing director of sales at Close Brothers Motor Finance, believes that the Government’s decision to end the exemption of EVs from VED and make them eligible for the expensive car supplement have drawn more motorists to the used market.

“Our own research shows that a fifth (21%) of drivers are looking to buy a used car over the remainder of the year," he said. 

“The rising uptake in second hand EVs is positive, as drivers have more stock to choose from at affordable prices, but the Government should be concerned that buyers shifting away from purchasing new EVs could hamper their zero emission vehicle mandate targets.”