Second-hand EV sales soar 44% as used car market surges

Britain’s used car market demonstrated robust health in the third quarter, with sales rising 2.8% to surpass two million units for the best quarterly performance since 2021, according to the Society of Motor Manufacturers and Traders (SMMT).

The milestone marks an 11-quarter growth streak, driven by increased new car supply feeding healthy stock levels into the secondhand market. Battery electric vehicles (BEVs) led the charge with a remarkable 44.4% surge to over 80,000 units, capturing a record 4.0% market share as one in 25 buyers chose electric.

Petrol remained dominant with 1.1 million transactions, while diesel declined 2.8%. Hybrid vehicles also posted strong gains, with standard hybrids up 30% and plug-in hybrids growing 2%.

Nearly 100,000 vehicles less than a year old changed hands during the quarter, many through Employee Car Ownership Schemes (ECOS) which provide workers in the automotive sector with access to new vehicles. A third of these nearly-new cars were electrified models.

However, this pipeline faces threat from government proposals to levy company car tax on ECOS vehicles. Industry figures warn the changes could slash new car registrations by 80,000 annually and deprive 60,000 workers of personal transport, whilst costing the sector over £1 billion in revenue and risking 5,000 manufacturing jobs.

The SMMT argues scrapping the proposals would preserve access to affordable, sustainable nearly-new vehicles for consumers. Combined with concerns about potential pay-per-mile taxation, the industry fears policies could undermine the transition to electric vehicles at a critical juncture for decarbonisation goals.

Mike Hawes, SMMT Cheef Executive said: ‘With used EV uptake at a record high, a robust used car market is essential for fleet renewal, and helps make electrified mobility more accessible for more motorists. However, overall consumer choice and affordability are at risk if the government scraps Employee Car Ownership Schemes, a move that would stifle supply of the very latest vehicles into the used market and cut Exchequer revenue. Britain needs fiscal policy that promotes rather than prevents economic growth, social mobility and decarbonisation.’