The UK’s used car market grew 7.2% in Q2 2024, supported by surging sales of electric vehicles.

Used BEVs recorded their highest-ever market share at 2.4%, as sales soared 52.6%

The increase, which marked the sixth successive quarter of growth, saw an additional 131,128 sales compared with the same period in 2023, according to the new figures from the Society of Motor Manufacturers and Trades (SMMT).

Used car transactions have risen across every month of 2024 to date, with the first six months up 6.8% to 3,931,318 units – marking the best growth since 2016 and the best H1 since 2019. Year to date, the market is now just -3.0% shy of pre-pandemic levels.

Growing numbers of used car buyers are going electric. A total of 46,773 battery electric vehicles (BEVs) went to new owners between April and June, up 52.6% year on year and resulting in the highest-ever share of the market at 2.4%; up from 1.7% for Q2 2023.

Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also grew, up 25.2% to 21,580 units and 43.6% to 78,782 units respectively.

Petrol- and diesel-powered cars remained pre-dominant though and accounted for 92.4% of all vehicles, down from 94.3% last year. Petrol remained the most popular fuel type, up 9.2%, while diesel fell by 1.2%.

Superminis retained their title of the best-selling used vehicle type, with volumes increasing by 8.6% to make up 31.9% of transactions, followed by lower medium (27.1% share) and dual purpose (15.8% share). The top three accounted for three-quarters of all used vehicles. Only the executive (-4.2%) and luxury saloon segments (-5.4%) recorded volume falls.

Black remained the most popular used car colour, recording 6.3% growth and accounting for more than one in five (21.2%) transactions. Grey and blue held onto their second and third places with 17.5% and 16.3% market shares respectively. White moved into fourth place to push silver back to fifth, while cream/ivory remained at the bottom end of the spectrum, at just 1,194 units.

Mike Hawes, SMMT chief executive, said: “It’s encouraging to see the used car market continue its recovery, with choice and affordability rejuvenated by the new car sector’s sustained run of growth. The increased supply of electric vehicles to second and third owners is helping more motorists make the switch – underlining the importance of energising the new EV market to support a fair transition for all. Maintaining momentum requires reliable, affordable and green EV charging up and down the country and incentives to get all of Britain on board the net zero transition.”

The rise in second-hand EV sales has been reported as HPI says used EVs are now cheaper than petrol or diesel equivalents following sharp falls in values over the past two years.

Data from the vehicle history check and valuation specialist indicates that average retail prices of EVs are cheaper than petrol and diesel vehicles by around 8.5% at three years, rising to 14% at four years.

According to HPI, values of used EVs for cars at the same age and mileage point have, on average, halved since September 2022. For models such as the Jaguar i-Pace, Mercedes EQC and Tesla Model X, this can equate to well over £20,000 less than in the summer of 2022, and for cars like the Porsche Taycan, up to £40,000 less.

The latest AA Cars Used Car Index showed that prices of EVs and hybrids fell 12% between the first and second quarters of 2024, while petrol and diesel car values went up 3.5%.

James Hosking, managing director of AA Cars, added: “We’re expecting EV sales to reach record levels this year as more and more drivers are convinced to take the plunge thanks to the considerable savings.”

Close Brothers Motor Finance however has warned that the ZEV mandate, which means 22% of each carmaker’s car sales must be for zero emission models in 2024, is bringing complexities for the new and used car sectors, as buyers are put off by the high upfront cost of many electric vehicles, amongst other concerns,

Lisa Watson, director of sales, said: “Incentives and a like-for-like investment in charging infrastructure are needed to raise consumer demand for electric vehicles, which will in turn increase stock levels in the second-hand market. Otherwise, demand for used cars risks being bottlenecked around a diminishing fleet of petrol and diesel cars.”

Philip Nothard, insight director, said: “The surge in BEV sales is particularly promising, reflecting a significant shift in buyer preferences. However, as we look ahead to the year’s second half, it’s important not to get too giddy. Supply will remain a battleground, and the composition of the car parc is shifting faster than consumer preferences.

“While used values may have settled compared to the volatility seen last Q4, this year’s Q4 will likely see renewed turbulence as the rush to meet ZEV mandate targets intensifies in the new car market.”