Used electric car sales reached record levels in the first quarter of 2026, even as the wider used car market dipped slightly after 12 consecutive quarters of growth.
The UK used car market fell by just 0.2% in Q1 to 2,016,232 transactions, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The result marked the end of a 12-quarter growth streak, with the market held back by a weaker March. Transactions that month fell 2.3% against a strong March 2025 comparison, which was the only March to exceed 700,000 used car sales since 2017.
Used EV demand rises
Battery electric vehicle (BEV) transactions rose 32% to a record 86,943 units, increasing their share of the used car market to 4.3%. That means almost one in 23 used car buyers chose a BEV, compared with around one in 30 a year earlier.
SMMT said the growth reflected sustained manufacturer investment in new electric models, with greater choice in the new car market now feeding through into used stock.
Hybrid electric vehicle sales also rose strongly, up 27.6% to 128,039 units, taking a 6.4% market share. Plug-in hybrid transactions fell 8.9% to 20,021 units, equivalent to 1% of the market.
Combined, electrified vehicles accounted for 11.7% of used car transactions in the first quarter.
Petrol remained the most popular fuel type, despite transactions falling 0.6% to 1,147,969 units. Diesel demand declined 6.7% to 629,987 units, reflecting reduced supply from the new car market. Conventional petrol and diesel cars still accounted for 88.2% of used transactions.
Fleet renewal pressure
Superminis remained the most popular used car segment, despite sales falling 1% to 648,229 units, representing 32.2% of the market.
Lower medium cars were the second biggest segment, up 0.2% to 546,249 units and a 27.1% share. Dual purpose vehicles recorded the strongest growth, up 5.4% to 357,295 units, while multipurpose vehicles saw the sharpest decline, down 6.5% to 69,886 units.
SMMT said the used car market remains vital for affordable motoring, but warned that the UK’s ageing vehicle parc, now averaging 9.7 years compared with eight years in 2019, underlines the need for stronger new car supply to support future used stock.
The latest industry outlook expects the new car market to rise 3.6% to 2.093 million units this year, but BEV share has been downgraded to 26.8% from 28.5% after an underperforming first quarter.
Mike Hawes, SMMT chief executive, said: “The UK’s used car market remained flat in the first quarter, held back by weakness in March in comparison with a very strong performance in 2025. Better news is the record demand for used electric vehicles, as growing choice from manufacturers feeds through into the second-hand market.
“High fuel prices, given the conflict in Iran, may increase demand even further, but to maintain this momentum, every fiscal and policy lever must be pulled to ensure a healthy new car market that delivers the zero emission vehicles in volume to flow through to the used market.”
Commenting, Philip Nothard, insight director, Cox Automotive, said: “While Q1 2026 transactions again exceeded 2 million, marking only the second such result since 2019, the marginal year‑on‑year decline points to a market beginning to plateau. With demand under pressure from broader economic headwinds, sustaining this level of activity may prove challenging without a meaningful improvement in consumer confidence and purchasing power.”
James Wilson, COO of used car marketplace Motorway, added that the softer Q1 reflects the reality that consumers are still cautious about big-ticket purchases and that a dip in volume makes getting stock right even more important.
“Supply is the bigger structural challenge,” he said. “Our research reveals that 78% of used-car dealerships in the UK are more worried about stock availability in 2026 than they were in 2025, and the rising popularity of difficult-to-source EVs are part of the reason why.
“But as competition intensifies, dealers are prioritising sourcing strategies which allow them to move quickly and operate more efficiently – nearly all (92%) are already turning to digital channels to access a broader, national pool of vehicles.”
Ian Plummer, Autotrader’s chief customer officer said that beneath the headline figures, the underlying fundamentals remain strong, with very robust consumer demand and high levels of engagement continuing to underpin activity.
“Pricing is stable, demand is holding firm,” he noted, “and importantly, used cars continue to sell at pace, underlining just how competitive – and supply constrained – the market remains. For retailers, that presents a clear opportunity to focus on high‑demand segments, particularly electric and older stock, where strong consumer interest is translating into faster sales and margin potential.”
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