Sustained growth in prices across Britain’s used EV market signals a surge in consumer demand, although industry leaders warn more work is needed to secure long-term stability.

Following years of tumbling used car values, rising consumer demand has driven three consecutive months of annual price growth, according to the latest data from Autotrader.

The figures for August reveal that like-for-like used EV prices increased by 3.8% year-on-year. The growth was most pronounced in the critical three- to five-year-old bracket – which represents the heart of the used market – where average prices surged 9.4% year-on-year to £20,351.

Used EVs continued to sell faster than the wider market at an average of 27 days, with the three- to five-year cohort turning in just 26 days.

A stable second-hand market has vital knock-on effects for the entire automotive supply chain. Because used vehicle transactions make up the vast majority of UK car sales each year, stronger residual values directly reduce the monthly cost of leasing and personal contract purchase (PCP) deals for brand-new EVs. This helps to make new electric vehicles more affordable and accessible for businesses and households alike.

The improving health of the used EV market comes as record numbers of second-hand electric vehicles change hands across the UK. Data from the Society of Motor Manufacturers and Traders (SMMT) shows that interest in battery electric vehicles (BEVs) hit unprecedented levels over the second quarter. Transactions skyrocketed 67.0% to 110,761 units, representing the strongest quarterly growth since Q1 2024.

In terms of market share, BEVs secured a record 5.5% of the used market in Q2, up from 3.3% last year. Alongside rocketing fuel prices due to the Middle East crisis, a growing choice of models, increasing consumer awareness, expanding charging infrastructure and lower running costs continue to broaden the appeal of electric driving beyond early adopters.

The trends suggest used EVs are becoming a mainstream choice for cost-conscious motorists, with rising demand increasingly driven by value and running costs rather than early adopter enthusiasm.

Gurjeet Grewal, CEO of electric car leasing and energy specialist Octopus Electric Vehicles, said: “A strong used market means cheaper EVs and that’s a big win for drivers.

“We’ve seen demand for used EVs jump 150% over the last year, showing that drivers are choosing electric for the value it offers, coupled with being a superior technology.”

Ben Nelmes, chief executive of independent transport research organisation New AutoMotive, added: “Demand is growing because consumers increasingly recognise the value proposition. Lower running costs, improving infrastructure and a much wider choice of vehicles mean electric cars are becoming the obvious option for more households.”

However, industry leaders warn that there is more to do before the used market can support the next phase of the transition in a sustainable way.

Toby Poston, chief executive of the BVRLA, said: “The used market is where long-term confidence in any vehicle technology is ultimately established.

“The signs of consumer demand for used electric cars are encouraging, but the used EV market is still finding its feet after years of pricing pressure. Consumer confidence is building but remains fragile.

“Balanced policy, supporting drivers considering their next electric car, whether new or used, is what long-term success of the transition relies on.”

Martin Miller, founder of independent dealership EV Experts, stated: “We’ve seen the time between us buying an EV and selling it halve to under 30 days. That’s a pretty clear indication of where demand is heading.”

However, Miller emphasised that volume alone is not the goal. “Speed isn’t the only important number. We don’t get returns because we spend time with every customer understanding how they’ll actually use the car,” he noted, highlighting the critical role that dealer education and consumer matchmaking still play in securing a smooth transition.

Industry leaders say the latest trends indicate positive momentum for Britain’s electric vehicle market, but are calling for the EV sector and the Government to collaborate further to help growing demand, improving residual values and stronger consumer confidence reinforce one another to enable long-term market growth.