- More than 86,000 used electric cars were sold in the first quarter alone
- EV market share in the used car sector climbed to a record 4.3 per cent
- Industry leaders warn proposed tax changes could slow the UK’s EV transition
Britain’s used electric vehicle market is seeing its strongest growth yet as more drivers appear to be turning towards battery-powered cars amid rising fuel prices and mounting pressure on household budgets.
Fresh figures from the Society of Motor Manufacturers and Traders show that sales of second-hand electric cars have climbed to record levels across the UK, suggesting demand for cheaper-to-run vehicles is spreading beyond the new car market.
Between January and March, 86,943 pure electric cars changed hands in the UK’s used market, marking a 32 per cent increase compared with the same period last year. It was the strongest quarter ever recorded for used battery electric vehicle sales.
Electric cars also reached a record 4.3 per cent share of the second-hand market during the quarter, while total used car transactions remained broadly flat at just over two million vehicles.
The momentum continued into the following quarter. Between July and September, around 80,614 used battery electric cars were sold, giving EVs a 4.0 per cent share of the market, up from 2.8 per cent a year earlier. Overall used car sales rose 2.8 per cent year-on-year to 2,021,265 transactions.
The latest figures point to a gradual shift in buying habits as more consumers weigh the long-term running costs of petrol and diesel vehicles against the lower charging costs of electric cars.
Fuel prices and household costs push buyers towards EVs
Industry leaders believe the recent spike in fuel prices linked to tensions in the Middle East may be accelerating interest in electric vehicles.
Mike Hawes, chief executive of the SMMT, reportedly said growing vehicle choice from manufacturers was now feeding into the second-hand market, making electric motoring more accessible for everyday drivers.
He reportedly warned, however, that the UK government risks slowing progress if financial support and incentives are reduced too early.
According to Mr Hawes, a strong used EV market is important not just for consumers but also for wider fleet renewal and the country’s long-term decarbonisation plans.
The warning comes as Chancellor Rachel Reeves is reportedly considering plans to introduce a road pricing system for electric vehicles from 2028.
According to The Telegraph, electric car drivers could be charged 3p per mile under the proposal. The newspaper reported that the charge would add roughly £12 to a journey between London and Edinburgh.
Reports also suggest motorists may be asked to estimate their own mileage rather than having journeys tracked electronically.
Tax fears cast shadow over growing market
At the same time, the motor industry is raising concerns over proposed changes to Employee Car Ownership Schemes, which currently help businesses provide vehicles to staff in a tax-efficient way.
The SMMT warned that plans to subject vehicles bought through such schemes to company car tax could reduce the supply of newer vehicles entering the used market in future years.
Mr Hawes reportedly said removing the schemes could damage affordability and limit consumer choice at a time when the government is pushing for wider electric vehicle adoption.
He also suggested the move could reduce tax revenue while slowing economic growth and social mobility.
The debate now leaves the UK’s electric vehicle market at a difficult crossroads. Demand for used EVs appears to be growing steadily, helped by rising fuel costs and broader vehicle availability. But uncertainty around taxation and future driving costs may yet shape how quickly drivers continue making the switch.
