The UK’s used car market grew by 2.8% in the third quarter of 2025, with the strongest growth coming from battery electric vehicles (BEVs), according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
Used BEV transactions rose 44.4% to 80,614 units, giving them a record 4.0% share of the used market. Hybrids also saw a 30% rise, while plug-in hybrids increased 2.0%. Petrol vehicles remained dominant, but the SMMT said electrified vehicles now account for a growing share of used transactions as more zero-emission models enter the second-hand market.
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SMMT Chief Executive Mike Hawes described the increase in used EV activity as “a record high,” adding that a “robust used car market is essential for fleet renewal” and for “making electrified mobility more accessible.”
However, he warned that government plans to remove tax exemptions for Employee Car Ownership Schemes (ECOS) could “stifle supply of the very latest vehicles into the used market,” affecting affordability and slowing decarbonisation efforts.
Ian Plummer, Chief Commercial Officer at Autotrader, said the figures marked “a major milestone” for the market and noted that demand for used EVs has surged, particularly for more affordable three- to five-year-old models. He said that while drivers had “responded very positively to incentives,” any rise in running costs from taxation could “risk the impressive and hard-earned momentum in consumer demand.”
From a retail perspective, Will Jackson, Head of Commercial at Carwow, said rising used car activity reflected “a stagnant new car market” and “a fragile economic outlook.” He reported that 76% of site visitors now include used cars in their searches, with strong growth in online interest converting into retailer enquiries.
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By GlobalDataAt Big Motoring World, Chief Executive Laurence Vaughan said the group recorded a 52% year-on-year increase in total sales in Q3, with EVs representing 17.8% of vehicles sold. Vaughan said the group was now “actively seeking greater volumes of used EV stock” to meet rising demand, with the pace of adoption “up 16% compared with Q3 2023.”
The SMMT data also showed that the average vehicle age has risen to 9.5 years, and that 99,313 cars under a year old, a third of them electrified, changed hands during the quarter.
Industry figures said the continuing rise in used EV transactions pointed to a maturing electric vehicle market, but warned that policy stability and a steady flow of nearly new stock would be critical to maintaining momentum into 2026.
