The UK’s used car market continued its growth streak in the third quarter, aided by soaring battery electric vehicle (BEV) uptake.

More than two million (2,021,265) used car transactions were recorded in Q3; up 2.8% and marking the best performance for the quarter since 2021. The new figures from the Society of Motor Manufacturers and Traders (SMMT) also reveal an 11-quarter growth streak, driven by recovery in the new car market enabling a healthy supply of stock.

BEV uptake grew faster than any other powertrain – up 44.4% to 80,614 units, as one in 25 buyers made the switch for a record market share of 4.0%. The SMMT said the rise was due to ongoing efforts by manufacturers to increase supply into the new car market, along with rising consumer interest.

Hybrid electric vehicle (HEV) transactions rose by 30.0% to 107,727 units, increasing market share to 5.3%, while plug-in hybrid (PHEV) sales also grew, by 2.0% to 23,480 units, comprising 1.2% of the market.

But petrol remained the best-selling fuel type in the quarter, with transactions rising 1.9% to 1,145,148 units, while diesel fell 2.8% to 658,664 units.

Superminis remained the most popular vehicle class; up 1.8% to 649,859 units and accounting for nearly a third (32%) of transactions. Lower-medium cars were next, with 543,094 units changing hands, representing an increase of 2.0%. Dual-purpose vehicles also grew in popularity, with sales up 9.3% to 339,628 units – the highest growth of any segment.

In contrast, specialist sports cars fell 8.6% to 55,088 units – marking the greatest decline – followed by upper medium and executive, which dropped by 2.8% and 0.9% respectively.

Black and grey remained the best-selling used car colours, up 3.1% and 6.3%, with white (also up 6.3%) overtaking blue to reach the top three. Strongest growth was seen for cream cars at 10.1%, but volumes were small at 1,379 transactions. This was followed by green, which recorded 9.0% growth and 35,762 transactions. Despite a 3.2% uplift, maroon cars were the least popular with just 1,250 changing hands. Pink cars, meanwhile, recorded the steepest decline, of 7.0% to 1,314 units.

The SMMT data also shows the average age of the UK vehicle parc continues to increase, and currently stands at 9.5 years – up from eight years in 2019. However, 99,313 cars under a year old – a third of them electrified – changed hands in Q3. Many of these will have entered the used car market via employee car ownership schemes (ECOs) – where car manufacturers and dealers enable employees to source a new car at a discounted price before the vehicle is bought back to provide used car stock – according to the SMMT, which warned again that government plans to levy company car tax on ECO vehicles will eliminate an “essential pipeline of high-quality, cost-effective, nearly new vehicles”.

The SMMT also warned that reported proposals to introduce pay-per-mile taxation for electrified vehicles “risk acting as a major deterrent to drivers of new and used cars alike from switching to EVs”.

Mike Hawes, chief executive of the automotive industry body, said: “With used EV uptake at a record high, a robust used car market is essential for fleet renewal, and helps make electrified mobility more accessible for more motorists. However, overall consumer choice and affordability are at risk if the Government scraps employee car ownership schemes, a move that would stifle supply of the very latest vehicles into the used market and cut Exchequer revenue. Britain needs fiscal policy that promotes rather than prevents economic growth, social mobility and decarbonisation.”

The surge in used car volumes was greeted by the wider automotive sector, which also expressed concerns about the Government’s potential EV tax proposals.

John Cassidy, sales managing director at Close Brothers Motor Finance, commented: “The rising uptake of used EVs is good news for the Government, which is looking to encourage the switch to electric ahead of the 2030 ban on the sale of new internal combustion engines (ICE). However, with eyes on the upcoming Budget amid rumours of a pence-per-mile tax scheme for EVs, it must tread carefully not to remove any incentives. The development of the required charging network remains crucial, and any taxes may provide more reason to stick to vehicles with internal combustion engines for the time being.”

And Philip Nothard, insight director at Cox Automotive, said: “The strong EV growth signals progress, but stability in Q4 will depend on government clarity and consumer confidence amid economic challenges.”

Meanwhile, Big Motoring World said the rise in used EV demand had been helped by the Government’s Electric Car Grant available for new EVs.

Laurence Vaughan, chief executive, added: “EVs accounted for 17.8% of all Big Motoring World sales in Q3, a period in which the group achieved record overall sales. According to our sales data, the pace of EV adoption increased by 4% year-on-year in Q3, and by 16% compared with Q3 2023. We are already actively seeking greater volumes of used EV stock from our trade partners to ensure we can meet growing demand into Q1 next year, anticipating only a modest slowdown over the festive period.”