Demand for used battery electric vehicles (BEVs) soared during the third quarter on the back of increased supplies and lower values.

Used BEV volumes rose by 99.9% to 34,021 units in Q3

Volumes rose by 99.9% to 34,021 units, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT). The boost means BEVs now account for 1.8% of the used market, up from 1.0% last year.

Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also grew, up 34.6%, and 46.4% respectively. This outpaced the volumes for petrol and diesel cars, which grew by 4.0% to 1,065,448 and 2.3% to 704,204 units respectively.

The demand for used EVs also outstripped the rise in the overall used car market, which grew 5.5% in Q3 2023, with almost 1.9 million units changing hands. Volumes rose for every month of the quarter, with the strongest gain in September, up 6.3%, which helped the market deliver the best Q3 performance since 2021.

The SMMT has said the ongoing investment in the charging infrastructure remains key to continued used EV demand.

Mike Hawes, chief executive of the industry body, commented: “The used car market continues to grow strongly, with re-energised supply unlocking demand for pre-owned electric vehicles – the result being twice as many motorists switching to zero-emission motoring in the quarter. Maintaining this momentum requires growth in the new car market, to boost supply to the used sector and cement this success. Equally important is the urgent need for charging infrastructure rollout so that all drivers can have confidence in being able to charge whenever and wherever they need.”

Matas Buzelis, car expert at carVertical, said the data showed growing used buyer confidence in EVs: “Sales of used EVs have doubled as drivers increasingly opt for greener vehicles which will future-proof them for the introduction of more clean air zones around the country.

“This bodes well for the future, as it suggests drivers have fewer concerns about battery life and EVs depreciating in value, and are increasingly willing to buy an electric car second hand.”

However, KPMG highlighted how falling prices for used EVs have helped drive demand.

Richard Peberdy, UK head of automotive for KPMG, said: “Used electric vehicle prices have seen volatility for some months now, due to a normalisation of pricing as supply grows within a market that’s still in its infancy.

“This lowering of used EV prices is leading to increased choice and cost viability for consumers looking to make the transition to an EV. Quarter on quarter, this is helping to drive up EV market share as a percentage of the overall used car market.”

Market up 4.6% YtD but still off pre-pandemic levels

Cap HPI has said the market is undergoing a realignment on values

Year to date, the overall market is up 4.6% to 5,563,576 units, but uptake is still 9.3% off pre-pandemic levels.

And while the SMMT data shows rises in volumes, values continue to come under pressure. Cap HPI issued a warning earlier this week that values have slipped by a further 1.5% already this month. That’s on the back of a 4.2% fall in October – which marked the largest drop in a single month since the introduction of Cap Live in 2012 and the largest decline since May 2011

Derren Martin, Cap HPI director of valuations, has said the market is undergoing a realignment, adding: “The market is moving quickly, and the valuations team at Cap HPI is making thousands of adjustments to vehicle values on a daily basis.”

And Matas Buzelis at carVertical has said that while the Q3 increase in sales is encouraging, “there are signs that drivers may be increasingly buying older vehicles with more miles on the clock, as they are usually a more affordable option”.

“The average age of cars on Britain’s roads has now reached 9.3 years, an all-time high. This puts drivers more at risk of buying a worn car that needs costly repairs down the road — overriding the savings they made by buying a cheaper model in the first place.”

KPMG’s Richard Peberdy added: “Demand for used cars remains relatively robust. But increased supply, the cost-of-living crisis and higher interest rates have all combined to reverse some of the price growth seen during the pandemic years.”

Most popular vehicle type and colour revealed

The newly published SMMT stats also outline the highest-demand model types and colours.

Superminis remained the most popular vehicle type, rising by 5.8% to 607,484 units and accounting for 32.3% of transactions. Rounding off the top three vehicle types were lower medium and “dual-purpose cars” (SUVs and crossovers), both rising by 7.1% to make up 26.8% and 14.9% of the market. Combined, the three segments account for almost three quarters (73.9%) of all cars sold in Q3. At the other end of the scale, sports and luxury saloons were the only segments to see declines, falling 1.8% and 2.5% respectively.

Black remained the most popular used car colour for the 11th consecutive quarter, taking more than a fifth (21.3%) of sales. The top five remain the same as Q3 2022, with grey taking second place and seeing above average gains – growing 9.8% to increase market share to 17.1%. Blue held strong in third place, silver – once top of the list – was fourth and white came in fifth.