Demand for used EVs rises to record levels as second-hand car market grows in 2024

The UK’s used car market grew by 5.5% to 7,643,180 transactions in 2024, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). Marking eight quarters of continuous growth, the year saw 400,488 more vehicles change hands than in 2023, with growth in the new car market fuelling availability and wider choice within the used sector.¹ Transactions rose in every month in 2024, as they did in 2023, with Q4 up 4.0% to 1,746,051 units.

The top three popular body types remained the same for another year, with superminis taking the top spot, accounting for one in three (32.3%) of all used cars sold in 2024. Lower medium held second place, with a 27.1% share of the market and dual purpose vehicles rounded off the podium, making up 15.9% of sales. Dual purpose recorded the strongest rise in volumes, up 10.7%, reflecting they are now the bestselling segment in the new car market. At the other end of the spectrum, luxury saloons represented just 0.5% of the market.

While grey remained most popular in the new car market, black cars were favoured among used car buyers, with more than 1.6 million (21.3%) opting for the colour. Grey was second, with a 17.6% share and blue third, taking 16.2% of sales. Combined, the top three hues accounted for more than half (55.1%) of all cars sold. Meanwhile, 5,171 buyers opted for a pink motor – an increase of 301 vehicles on 2023, while 4,659 maroon cars found new owners, pushing the shade up to displace cream, which saw 4,657 transactions, as the least popular colour. Turquoise cars saw the largest growth in 2024, up 11.2% to 8,266 cars, while grey saw the largest volume gain – up more than 117,000 units to 1.349 million.

Demand continued to soar for used battery electric cars (BEVs), rising some 57.4% to a record 188,382 units and achieving a new high for market share, at 2.5%, up from 1.7% in 2023 and 13 times larger than back in 2019. BEV share in Q4 was 2.7%, matching Q3’s performance.² Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also grew, up 32.2% to 92,120 units and 39.3% to 306,114 units respectively.

Combined, the number of used electrified vehicles changing hands increased by 43.3% on 2023, with more than half a million of these ultra low or zero emission motors accounting for a 7.7% share of sales.³ This growth aligns with the new car market and demonstrates the increasing demand and choice across the sector for new and used electric motors – at price points to suit all potential buyers.

Such growth cannot continue to be taken for granted, however, especially given that from April, many BEVs registered in the new car market will be subject to Vehicle Excise Duty and the Expensive Car Supplement (ECS) – drastically increasing ownership costs during the first six years of a vehicle’s use and therefore likely to impact on the used market. Exempting BEVs from the ECS – or at least, raising the eligibility threshold, which has remained unchanged since 2017 – would therefore remove a substantial disincentive for both new and used buyers.

Petrol and diesel powered cars accounted for 92.1% of all used car transactions – down slightly from 94.3% last year. Petrol remained dominant, up 6.8% to represent 57.1% of the market, while diesel transactions dropped by -2.4%, accounting for 35.0% of all transactions.

Mike Hawes, SMMT Chief Executive, said, “The used car sector’s 25-month growth streak is good news for fleet renewal and for consumers benefitting from the greater choice filtering through from the new market. Record sales of second hand EVs also demonstrates strong appetite for these cutting-edge cars at lower price points. Ensuring ongoing growth, however, means maintaining that affordability, along with supply, which requires meaningful fiscal incentives to stimulate consumer demand for new EVs and removing the VED expensive car tax disincentive that risks dragging down used EV affordability for years to come.”

Notes
¹ Used vehicle sales, 2023: 7,242,692 units
² BEV market share, 2023: 1.7%. 2019: 0.2%
³ Electrified used car sales, 2024: 585,616 units