Used Electric Car Sales Surge Amidst Rising Fuel Prices

Sales of second-hand electric vehicles (EVs) have experienced a significant surge, with a 67% increase in transactions between April and June, marking the sector's strongest quarterly growth on record. This surge, totaling 110,761 units, contributed to the overall used car market returning to growth, with 2,009,318 vehicles changing hands in the second quarter of 2026.

The rise in used EV demand is largely attributed to escalating petrol and diesel prices, which have been influenced by geopolitical events in the Middle East. Drivers are facing average petrol prices of 160 pence per liter, and the cost to fill an average family diesel car has surpassed £100.

This trend marks a notable shift from the previous year, when EV sales growth was relatively subdued following changes to Vehicle Excise Duty that removed exemptions for electric cars. The current demand is also supported by an increased availability of used EV models, many of which feature longer battery ranges. With the average new EV offering around 300 miles per charge, typical used models now provide between 150 and 250 miles, making them a more practical option for many motorists considering the average weekly mileage in the UK.

In April and May, demand for used EVs saw notable increases of 110.9% and 57.6% respectively, moderating to 37.8% growth in June. This brought the market share of used EVs to 5.5% of all used car transactions in the second quarter, up from 3.3% a year prior.

Used EV Market Performance

Despite the strong performance of used EVs, they still represent a small fraction of the overall used car market, with nine in ten buyers still opting for conventionally fueled vehicles. Petrol remained the most popular fuel type, despite a 1.2% decrease in transactions to 1,121,243 units. Diesel sales continued to decline, falling 7.2% to 620,045 units. The Society of Motor Manufacturers and Traders (SMMT) attributes these declines to reduced supply from the new car market.

Used hybrid electric vehicle sales also saw an increase, rising 31.2% to 130,825 units, boosting their market share to 6.5%. However, sales of used plug-in hybrid electric vehicles (PHEVs) decreased by 6.8% to 22,856 units.

Prices for used EVs have shown stability and growth, with three-year-old models experiencing an average price increase of 1.6% in July, marking four consecutive months of value growth totaling nearly 7%. This stands in contrast to petrol and diesel vehicles, which saw slight price decreases, and hybrids, which fell marginally.

Mike Hawes, SMMT chief executive, commented on the trend, stating, "A return to growth is good news for motorists and the wider automotive sector, with sales of used EVs rising particularly strongly as more choice reaches more buyers." He also cautioned that "increasingly unrealistic targets in the new car market risk constraining that supply and pushing up costs," advocating for "urgent regulatory reform" to ensure a smooth transition for all drivers. The overall used car market saw its first second-quarter sales surpassing two million units since 2021, reaching just 1.2% below pre-pandemic levels.