Used car sales in the UK soared past 2 million in the first quarter of 2025 a level not seen since before the pandemic in 2019 — signaling a booming secondhand market amid struggling new car sales.
According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), demand for affordable used vehicles continues to outstrip that for high-priced new models. Much of the momentum is being fueled by budget-friendly electric vehicles (EVs) entering the market from fleet and leasing returns, offering buyers appealing, cost-effective alternatives.
In total, 2,020,990 used cars changed hands in Q1 2025, a 2.7% increase compared to the same period in 2024. Petrol models remained the top choice among buyers, while used diesel transactions dipped 3.1%.
The sharp interest in used cars has prompted the SMMT to renew its calls for government incentives to stimulate the new car market. These include a 50% cut in VAT on new EVs, reductions to the luxury car Vehicle Excise Duty (VED) supplement, and lower VAT on public EV charging. “These steps would help drive new car uptake and support a strong, sustainable used car market,” the SMMT said.
John Cassidy, Managing Director of Sales at Close Brothers Motor Finance, noted: “While motorists benefit from a wider selection of affordable used cars, the continuing rise in secondhand sales — alongside declining new registrations in April — underlines the financial pressures facing consumers. It's encouraging to see greater interest in used EVs, but a shift away from new EV purchases could jeopardize progress toward the government’s Zero Emission Vehicle (ZEV) mandate.”
Gaurav Jain, Commercial Director at Carwow, added: “The surge in used car demand in Q1 is partly due to ongoing inflation in new car prices. Over the past five years, recommended retail prices for new cars have jumped 35%. In 2024, one in four new cars configured on our platform exceeded £40,000, while consumer budgets have remained mostly stagnant — leading to increased interest in the used market.”
Among alternative fuel vehicles, used hybrid sales climbed 30.2%, nearing 100,000 transactions. But used EVs led the growth chart with a staggering 58.5% year-on-year increase, totaling 65,850 units sold to second or third owners.
SMMT Chief Executive Mike Hawes commented: “The growth in used EV sales shows more people and businesses are embracing electric mobility as it becomes more accessible and affordable. However, maintaining this progress depends on a steady supply of EVs from the new car sector — which needs strong fiscal support and a well-developed, affordable charging infrastructure to ensure all drivers can make the switch to zero-emission transport.
Comments