Why British Drivers Are Rethinking Their Next Used Car

• Used car market records second quarter of growth, up 0.5% to mark best Q3 since 2021.
• Battery electric car transactions rise 23.2% as market share hits 4.8%, with ever-growing choice reaching second-hand buyers.
• Best year to date performance since before the pandemic with 6.1m cars finding new owners.

The UK’s used car market continued to grow in Q3, up 0.5% as 2,030,619 vehicles changed hands, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The performance is the strongest Q3 since 2021.¹ Year to date, the market has grown 0.3% to 6,056,169 transactions – the best first three quarters since 2019.²

Demand for battery electric cars rose 23.2% to 97,625 units in Q3 as sustained investment in new vehicle models continued to filter through to the used market, providing buyers with greater choice. Around one in 20 used car buyers (4.8%) chose an EV, up from 3.9% in the same period last year. Year to date, used battery electric car transactions have risen 39.6% to 295,524 units.

Hybrid electric vehicle (HEV) sales also grew strongly in Q3, rising 25.9% to 135,204 units and increasing market share to 6.7%, up from 5.3% a year ago. Plug-in hybrid transactions, meanwhile, fell by -13.3% to 20,911 units, accounting for 1.0% of overall demand, although this small segment of the market is subject to volatility.

Petrol remained the most popular fuel type, with 1,148,576 vehicles (56.6% of the market) changing hands – just 271 fewer than in the same period last year. Diesel sales saw a -5.3% decline to 623,354 units and a 30.7% share, reflecting reduced supply from the new market. As a result, non-electrified vehicles comprised almost nine in 10 (87.5%) used car sales, compared with 89.5% in Q3 last year.

Accelerating the used market’s EV transition depends on a healthy new car market. Manufacturers are investing heavily in new models and offers to boost uptake, broadening future choice for used buyers. However, reliance on discounting on what is brand new technology to meet increasingly unfeasible ZEV Mandate targets puts significant pressure on trade-in values, discouraging renewal and slowing the flow of vehicles into the used market. Reforming the mandate to reflect market realities would support a more sustainable transition and protect choice for new and used buyers.

Superminis continued to be Britain’s best-selling used car type, accounting for 32.0% of transactions, with volumes edging up 0.1% to 650,511 units. Lower medium cars followed with a market share of 26.6% despite volumes declining by -0.5%. Dual purpose cars recorded the strongest growth, rising 8.5% to 368,428 units and securing 18.1% of the market.

Monochrome continued to dominate buyer preferences, with black, grey and white retaining their positions as the top three car colours. Together, they accounted for more than 1.15 million transactions and 56.7% of the market, with black remaining the most popular choice with a 21.2% market share. Cream posted the strongest growth, up 14.2%, although with just 1,575 cars changing hands it remained a niche choice, while silver recorded the largest decline, down -6.7% but still representing more than a quarter of a million (254,714) sales

Mike Hawes, SMMT Chief Executive, said, “Another quarter of growth means Britain’s used car market remains on course for its best year since the Covid-19 pandemic. Long-term investment in new models is broadening choice for used car buyers, while growth in new EVs is driving a surge in second-hand uptake. To sustain this progress and make zero emission mobility possible for all motorists, the new car market must remain strong, underpinned by measures that boost EV demand – including affordable and widely accessible charging infrastructure and compelling fiscal incentives.”

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