Used-car EVs show strong June demand

What's happened

Used EV sales remain robust in 2026, with gains in second-hand market and rising share of EVs in Britain’s total used-car transactions. May and June trends reflect ongoing supply, price dynamics, and policy influence as the market adapts to higher fuel costs and incentives.

What's behind the headline?

Context and Implications

• The surge in used EV transactions (up 67% year-on-year in Q2) indicates growing consumer acceptance and broader model availability.
• EV share reaching 5.5% of the used-car market signals a long-term shift, even as the overall market remains substantial in petrol/diesel.
• Dealers are expanding the range of options, from budget to near-new EVs, affecting pricing dynamics and residual values.

Underlying Drivers

• Higher fuel prices linked to regional tensions are pushing buyers toward electrified options.
• A wider model mix in the used market, including older EVs and hybrids, is creating more choices for price-conscious buyers.

Potential Risks

• Continued discounts on new EVs could affect new-car demand and used-car price signals in the mid-term.
• Supply constraints in specific models may limit availability in certain price brackets.

Forecast

• Used EVs will continue to gain market share as charging infrastructure and incentives improve, but overall growth will depend on policy stability and used-vehicle depreciation trends.

How we got here

The UK used-car market has seen growing interest in electric vehicles (EVs) as more EVs enter the second-hand market. SMMT data shows a surge in used EV transactions in Q2 2026, driven by higher fuel costs and policy incentives, while overall petrol/diesel remains dominant.

Our analysis

- Independent: Used-car sales up 0.7% YoY in Q2 2026; EVs surge 110,761 in quarter, 5.5% market share; Mike Hawes calls for regulatory reform (SMMT). - Independent: July new-car registrations up 156,571; EV demand up 44.5% YoY; potential regulatory concerns about discounts. - Ars Technica: Used EV market in $25k-$30k band shows diverse availability with many models (Blazer EV, Equinox EV, Mach-E, Ioniq 5/6) and Tesla used inventory.

Go deeper

• What new incentives could change used-EV demand this quarter?
• Which models hold residual value best in the current market?
• Will supply constraints affect the most popular used EVs?

More on these topics

• United Kingdom - Country in Europe

  The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the north­western coast of the European mainland.

• Society of Motor Manufacturers and Traders - Trade association

  The Society of Motor Manufacturers and Traders is the trade association for the United Kingdom motor industry. Its role is to "promote the interests of the UK automotive industry at home and abroad."