Demand for battery electric vehicles (BEV) rose 23.2% to 97,625 units in Q3 of 2026, as sustained investment in new vehicle models continued to filter through to the used market, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
The UK’s used car market continued to grow in Q3, up 0.5% as 2,030,619 vehicles changed hands. The performance is the strongest Q3 since 2021, with year to date, the market has grown 0.3% to 6,056,169 transactions – the best first three quarters since 2019.
Around one in 20 used car buyers (4.8%) chose an EV, up from 3.9% in the same period last year. Year to date, used battery electric car transactions have risen 39.6% to 295,524 units.
Hybrid electric vehicle (HEV) sales also grew strongly in Q3, rising 25.9% to 135,204 units and increasing market share to 6.7%, up from 5.3% a year ago.
The SMMT added that accelerating the used market’s EV transition depends on a “healthy new car market” and manufacturers were “investing heavily in new models and offers to boost uptake, broadening future choice for used buyers”.
But it added that discounting to meet the ZEV Mandate “puts significant pressure on trade-in values, discouraging renewal and slowing the flow of vehicles into the used market”, and called for reforming the Mandate to “reflect market realities would support a more sustainable transition and protect choice for new and used buyers”.
Mike Hawes, SMMT Chief Executive, said:
“Another quarter of growth means Britain’s used car market remains on course for its best year since the Covid-19 pandemic. Long-term investment in new models is broadening choice for used car buyers, while growth in new EVs is driving a surge in second-hand uptake.
“To sustain this progress and make zero emission mobility possible for all motorists, the new car market must remain strong, underpinned by measures that boost EV demand – including affordable and widely accessible charging infrastructure and compelling fiscal incentives.”
James Hosking, Managing Director of AA Cars, said:
“Back-to-back quarters of growth in used car sales underline the resilience of the market despite continued financial pressures on motorists, and suggest the industry is heading into 2027 in good health.
“Used electric cars are giving the industry a significant uplift, with rising fuel prices offering motorists another reason to consider making the switch. Used EV transactions rose by 21.1% year-on-year, and our own figures reflect this growing appetite, with views of used electric car listings jumping almost 50% year-on-year in September.
“That interest is translating into sales. Separate AA Cars research found that more than a third of used Tesla Model 3s, Polestar 2s and Tesla Model Ys sold through our platform this year found buyers within just seven days.
“The used market is also making the switch to electric much more affordable. The AA’s latest EV Readiness Index found that while new electric cars cost, on average, 25% more than comparable petrol models, the premium falls to just 1% in the used market. For motorists who can charge at home, electricity was also 66% cheaper per mile than petrol.
“The coming months should bring plenty of opportunities for buyers and dealers alike, with competitive prices and a healthy supply of used vehicles helping to keep the market moving.”
Image courtesy of Green Car Guide
