UK Used Car Market Stalls in Q1 2026 as Used EV Demand Surges

The UK’s used car market experienced a near-stable first quarter of 2026, with transactions declining just 0.2% year-on-year to 2,016,232 units, marking the end of a 12-quarter growth streak. The Society of Motor Manufacturers and Traders (SMMT) attributed this stabilization to softer March performance compared to an unusually strong 2025. Used electric vehicle (EV) sales led growth, rising 32% to 86,943 units and accounting for 4.3% of the market, up from 3.3% a year earlier. This increase reflects growing availability of second-hand EVs, supported by manufacturer discounts and government incentives. Traditional hybrids (HEVs) also grew 27.6% to 128,039 units, while plug-in hybrids (PHEVs) fell 8.9% to 20,021 units. Combined, electrified vehicles made up 11.7% of used car sales, signaling gradual progress toward electrification. Petrol remained the top fuel type with 1,147,969 transactions, down 0.6%, while diesel demand dropped 6.7% to 629,987 units. Together, petrol and diesel vehicles still dominated at 88.2% of sales, though their decline continues. Superminis led the market with 648,229 units (32.2%), despite a 1.0% drop, while SUVs grew 5.4% to 357,295 units, the strongest segmental increase. The UK’s vehicle parc is aging, with the average car now 9.7 years old, up from eight years in 2019. This trend highlights the need for a steady supply of new vehicles, particularly EVs, to maintain affordability in the used market. Industry forecasts project a 3.6% growth in new car sales for 2026 but a revised downward adjustment in BEV market share to 26.8%, emphasizing the importance of policy alignment to sustain EV adoption.