UK Used Car Market Surpasses Two Million Sales in Q1 2025
The UK’s used car market has achieved a significant milestone, breaching two million sales in the first quarter of 2025 for the first time since 2019, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). A total of 2,020,990 vehicles changed hands in Q1, representing a 2.7% growth compared to the same period last year, marking nine consecutive quarters of growth.
Petrol remained the best-selling fuel type, rising 2.1% to 1,149,855 units, while diesel experienced a 3.1% decline to 679,739 units. As a result, internal combustion engine (ICE) cars accounted for 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.
Hybrids attracted record numbers of second and third owners, up 30.2% to 98,830 units, while 23,540 plug-in hybrids changed hands, a 14% increase on the same period last year. Battery electric cars recorded the highest growth, increasing by 58.5% to 65,850 units and achieving a record 3.3% share of all transactions.
The SMMT emphasizes that long-term success relies heavily on healthy demand for new electric cars, making Government incentives crucial. The organization suggests that halving VAT on new EVs, scrapping or amending their liability to the VED expensive car supplement, and equalizing VAT paid on public charging to domestic rates would help increase uptake of new cars and promote a vibrant used market.
Mike Hawes, chief executive at the SMMT, stated, “The used car market has enjoyed its strongest start to a year since before the pandemic, with supply fueled by a recovering new car market. Critically, more second-hand buyers are opting for electric vehicles, with greater choice and affordability enabling more people and businesses to switch.”
Smaller cars remained the mainstay of demand, with superminis again being the best-selling segment, accounting for almost a third (32.4%) of all used car transactions. The popularity of lower emission vehicles is increasing, with James Wilson, chief operating officer at used car marketplace Motorway, noting a 66% year-on-year leap in EV and hybrid sales volumes.
James Hosking, managing director of AA Cars, highlighted that affordability remains a powerful driver, with prices of the UK’s most popular used EVs and hybrids falling by 10% year-on-year in Q1. As more models enter the second-hand market, buyers are benefiting from increased variety and competitive price points, fueling the continued growth of EVs in the used market.
