The UK’s used car market showed signs of stabilisation in the first quarter of 2026, with transactions dipping just 0.2% year-on-year to 2,016,232 units.
According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), this marginal decline ends a 12-quarter streak of continuous growth, reflecting softer performance in March compared to an unusually strong month in 2025.
Used EV Sales Jump 32% as Demand Accelerates
Despite the overall market plateau, used electric vehicles continue to gain momentum. Battery electric vehicle (BEV) transactions surged 32.0% to 86,943 units in Q1, pushing their market share to 4.3%—up from roughly 3.3% a year earlier.
This growth highlights a key shift: increasing availability of second-hand EVs is making electric mobility more accessible. A broader range of models, combined with manufacturer discounts and government incentives in recent years, is now feeding into the used car supply pipeline.
Hybrid vehicles also posted strong gains. Traditional hybrids (HEVs) rose 27.6% to 128,039 units, capturing 6.4% of the market. In contrast, plug-in hybrids (PHEVs) saw demand fall 8.9% to 20,021 units, accounting for just 1.0% share.
Combined, electrified vehicles—BEVs, HEVs, and PHEVs—made up 11.7% of all used car transactions in Q1, underlining steady progress toward electrification in the second-hand sector.
Petrol and Diesel Still Dominate, But Decline Continues
Conventional fuel types still dominate the UK’s used car landscape, although both segments are shrinking. Petrol remained the top choice, with 1,147,969 transactions, down slightly by 0.6%. Diesel demand dropped more sharply, falling 6.7% to 629,987 units, largely due to reduced supply from the new car market in recent years.
Overall, petrol and diesel vehicles still accounted for 88.2% of all used car sales in Q1, demonstrating that while electrification is accelerating, the transition remains gradual.
Superminis Lead While SUVs Gain Ground
By segment, superminis retained their position as the UK’s most popular used cars, despite a 1.0% decline to 648,229 units—representing 32.2% of the market. Lower medium cars followed with 546,249 units, up slightly by 0.2%.
Dual-purpose vehicles, including SUVs, recorded the strongest growth, rising 5.4% to 357,295 units. Meanwhile, multipurpose vehicles experienced the steepest drop, down 6.5% to 69,886 units.
Colour Trends Reflect Changing Buyer Preferences
Colour preferences remained consistent with broader automotive trends. Black and grey continued to dominate, growing 0.4% and 2.8% respectively. White re-entered the top three after a 3.1% increase, overtaking blue.
More niche colours showed mixed performance. Cream recorded the highest growth rate at 11.7%, albeit from a low base, while pink saw the sharpest decline, down 17.8%. Maroon remained the least popular colour overall.
Ageing Vehicle Parc Highlights Supply Challenge
The UK’s vehicle parc continues to age, with the average car now 9.7 years old—up significantly from eight years in 2019. This trend underscores the importance of a healthy new car market to sustain supply in the used sector.
A strong flow of new vehicles—particularly EVs—is critical to ensuring a steady pipeline of second-hand options in the coming years. Without it, affordability and accessibility could become growing concerns.
Outlook: Policy Alignment Key to Sustaining EV Growth
While the new car market is expected to grow 3.6% to 2.093 million units in 2026, forecasts for BEV adoption have been revised downward, with market share now projected at 26.8% instead of 28.5%.
Industry leaders warn that aligning policy with real-world market conditions will be essential to maintaining EV momentum. Rising fuel prices, influenced by geopolitical tensions such as those linked to Iran, could further boost interest in electric vehicles—but sustained growth will depend on continued incentives and investment.
Bottom Line
The UK’s used car market may have paused after years of growth, but the rapid rise in used EV demand signals a structural shift underway. As supply improves and prices become more competitive, electric vehicles are increasingly becoming a mainstream choice for second-hand buyers—setting the stage for continued transformation across the automotive market.
[source: SMMT]
