Purchases of second-hand electric cars continue to hit record levels as more examples stream into the used market, new figures show.
Some 53,423 EVs changed hands between July and September, the Society of Motor Manufacturers and Traders (SMMT) has confirmed – an increase of 57 per cent year-on-year and the most ever recorded in a three-month spell.
And used values are on the rise too, according to experts, who unanimously say that the second-hand EV market had been at rock bottom but has now taken a turn with prices increasing – while every other fuel type has dipped.
Used EV sales continue to reach record levels as more examples enter the second-hand market. More surprising is that they’ve started to go up in price, having crashed in value in the last two years
EVs still make up a tiny fraction of used sales
Looking at the entire used car sector as a whole, EV still account for a very small fraction of activity.
Despite EV transactions being at their highest level ever, they still only account for two in every 50 motors changing hands.
In the three-month period, just 2.7 per cent of all used car sales were battery electric models, the official figures show.
This is understandable, given there are just under 1.3million EVs on the road (as of the end of October) out of 34million passenger cars in total.
Unsurprisingly, it is used petrols that are changing hands most commonly – 1.12million between July and September (up 5.7 per cent).
Diesel demand still remains high despite a cliff-edge decline in new sales in the last decade.
Some 680,000 second-hand oil burners were purchased in Q3 2024, which is down 3.9 per cent on the same quarter a year ago. However, there are still 13 used diesel sales to every pre-owned EV bought.
Sales of used hybrids and plug-in hybrids also rose in the period, up 35.8 per cent and 29 per cent respectively.
Overall, the used car market continues to see ripe activity, growing by 4.3$ to 1.97million sales over the three-month spell
The Ford Fiesta – Britain’s most common car – was unsurprisingly the model that changed hands most between July and September
More second-hand examples of Ford Fiestas, Vauxhall Corsa, VW Golfs and Ford Focuses changed hands in the three-month period than EVs as a whole, the figures show
Ford’s Fiesta – the most popular car on UK roads – was the most bought and sold, with 77,908 changing hands between July and September, which is around 24,500 more than EVs across all brands.
In fact, more second-hand Vauxhall Corsas (64,681), VW Golfs (59,380) and Ford Focuses (57,327) changed hands than all EVs in the quarter.
Overall, the used car market continues to see ripe activity, growing by 4.3 per cent to 1.97million sales over the three-month spell.
SMMT chief exec Mike Hawes said a rise in used EV sales was testament to an increase in availability of ‘zero-emission vehicles to suit every budget’
SMMT chief executive Mike Hawes said: ‘Growth in the used car sector is good news and driven by an outstanding range of desirable and, increasingly, zero-emission vehicles, to suit every budget.
‘Maintaining this depends on a healthy new car market, particularly for EVs.
‘Giving consumers the confidence to switch from their familiar petrol or diesel vehicles requires confidence and incentives otherwise many would-be new car buyers will sit on their hands, leading to a diminishing market that will inevitably limit used car availability and affordability.
‘This will be to the cost of motorists, the economy and the environment – making a review of support for the transition, and the regulation intended to deliver it, an urgent priority.’
The SMMT said on Tuesday that registrations of new cars fell by 6 per cent in October compared with the same month in 2023. However, EVs were the only fuel type to record a year-on-year increase.
James Wilson, chief operating officer of used car marketplace Motorway.co.uk, said: ‘It’s a positive quarter for the used car industry as a whole, and a step in the right direction for the used-EV market.
‘There’s still lingering nervousness around charging infrastructure and battery health, but on the whole consumers and dealers are increasingly looking to the used market as the UK drives towards electric.’
A Department for Transport spokesperson said: ‘We are absolutely committed to delivering greener transport by supporting the transition to electric vehicles.
‘Today’s figures are excellent news, showing that sales of used electric vehicles are on the up. We will continue to support industry and consumers to make the switch, with over £300million announced in the Budget to support uptake.’
Electric was the only fuel type to see used values increase last month, experts say. However, they are starting from a much lower base, with prices crashing to rock bottom levels in the last 24 months
Used EV values on the rise having hit rock bottom
With UK drivers showing major reservations around buying electric cars, especially used models – commonly due to battery longevity concerns -, EV residual values have taken a rapid tumble in the last two years.
In fact, their rapid depreciation has seen EVs dip below the price of a second-hand petrol car of the same age.
Average retail prices for EVs in August were 8.5 per cent cheaper than petrol at the three-year mark, rising to 14 per cent by year four, valuations specialists Cap Hpi reported.
New EVs are, in general, significantly more expensive than new petrol or diesel cars – typically, motorists can expect a premium of between £5,000 and £10,000 to choose the battery-powered option.
Typically, electric cars are shedding between around a third and over half of their original price in the first 12 months, while an equivalent petrol sheds between a fifth and a third.
As such, a nearly-new year-old EV can already cost less on the used market than a similar model with a combustion engine.
But while Cap Hpi says rapid deprecation still makes used EVs generally very good value, the price of second-hand electric cars have started to bounce back.
Speaking to Car Dealer Magazine, Chris Plumb, senior valuations editor at the group, said that used car prices fell 1.1 per cent in October.
However, EVs bucked the trend, rising 0.3 per cent during the month, having also marginally increased in average value in September also.
EVs priced between £5,000 and £15,000 increased by around 0.7 per cent as more drivers considered low-price models.
By comparison, used petrol car prices fell 1.4 per cent, diesels by 1 per cent, hybrids by 0.6 per cent and plug-in hybrids by 1.1 per cent in October.
EVs priced between £5,000 and £15,000 increased by around 0.7% as more drivers considered low-price models last month, Cap Hpi said. A used EV between 3-5 years of age also sold faster (19 days) than the average second-hand car in October, says Auto Trader
Auto Trader’s latest Retail Price Index also showed used electric cars performing well in October, with advertised prices up 2.1 per cent month-on-month – the first rise in two years.
This is credited to ‘renewing retailer confidence’ in the second-hand electric market, the nation’s biggest used car selling site said.
‘Speed of sale for the 3-to-5-year-old electric segment sits at an impressive 19 days, one day faster than September and the fastest across all segments,’ the report added.
Ian Plummer, commercial director at Auto Trader, said: ‘With the recent lacklustre performance in the new car market, it’s very positive to see such strong consumer appetite for used EVs.
‘On our platform, demand has rocketed this year, especially among the ‘middle aged’ electric cars which on average are the same price, if not less than, their petrol or diesel counterparts.
‘They’re currently flying off forecourts 10 days faster than the rest of the used car market.’
Richard Walker, data and insight director at the used car marketplace, added: ‘Solid market health indicators in the used electric market are a bright spot as we see overall EV prices up month on month.
‘The 3-to-5-year-old EV segment continues to lead the overall market in selling faster than all others.
‘We’re hopeful that as retailer confidence continues to grow in the second-hand electric segment, more and more will be ready to get involved and – as with all segments of the market – we’d urge all retailers to use data to make informed electric stocking decisions.’
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
