The UK’s used car market started the year on a high with surging sales volumes and new records for electric vehicles.

Battery electric cars took a record 3.3% share of all transactions

Some 2,020,990 used cars changed hands in Q1 – up 2.7% YoY and marking the first time that sales have breached two million in the first quarter since before the pandemic – according to the new figures from the Society of Motor Manufacturers and Traders (SMMT).

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

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 14.0% on the same period last year.

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

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. Silver – a previous best-seller – 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.

The SMMT said the strong growth across the used car sector supply was fuelled by a recovering new car market.

But it said that long-term success for the used EV market relies heavily on healthy demand for new electric cars, making government incentives paramount.

Mike Hawes, SMMT chief executive, said: “Sustaining and expanding this growth 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.”

The industry body has reiterated the need to halve VAT on new EVs, and scrap or amend their liability to the VED Expensive Car Supplement, alongside equalising VAT paid on public charging to domestic rates.

Dan Caesar, CEO at Electric Vehicles UK, said the figures were further proof of significant latent demand for battery EVs.

“Averaging £3,000 cheaper than used combustion cars, with typically lower running costs and longer lasting too, there are bargain BEVs on British forecourts waiting to be snapped up by shrewd buyers. As they are with new car sales, battery EVs are set to become the most popular powertrain in the next 5 years of so as the network effect kicks in.”

And Quentin Willson, founder of the FairCharge campaign, said: “The latest figures show a clear trend that consumers are recognising the savings of buying a used EV. Now the fastest-growing used powertrain – up nearly 60% – and growth outperforming both petrol and diesel, shows that British consumer sentiment towards used electric cars is strengthening. This is very significant growth given that no incentives are available for private buyers of used EVs.”

Meanwhile, Susan Wells, director of EV and solar at Hive, also called for action to ensure a healthy used EV market.

“As today’s new electric vehicles become tomorrow’s affordable second-hand cars, boosting supply and ensuring EVs remain affordable and accessible to more motorists is key to maintaining this momentum. Policymakers must ensure they are taking every step to encourage more drivers to make the switch, including reducing VAT on public charging costs.

“What’s more, as EVs continue to enter and remain on our roads at a record pace, the UK’s charging network must be able to withstand the increased demand – both at home and within the public network. Accelerating the rollout of charge points must remain a number one priority and any delays risk putting the brakes on the progress that’s been made.”