Used electric cars reach record sales level

Sales of used electric cars have reached an all-time high, according to the latest market data.

A total of 53,423 used electric cars changed hands between July and September – a 57% increase on the same period in 2023.

The latest used car figures come from the Society of Motor Manufacturers and Traders (SMMT) and show that the rise in second-hand electric car transactions far outstripped the overall market, which grew just 4.3%.

Used EVs now account for 2.7% of the second-hand market, up from 1.8% in the same period last year.

Much of the rapid growth is down to company cars being removed from business fleets either by individual companies or leasing firms. Fleet supply to businesses and leasing firms remain the main driver of new EV sales thanks to attractive tax benefits, with private sales still far behind.

With continued concerns over the upfront cost of EVs, a widening pool of more affordable second-hand models is good news for the industry and consumers. Figures from earlier this year show that the average used electric car is now cheaper than an equivalent petrol or diesel model, which could help stimulate the private market.

Data from HPI shows that a used EV is 8.5% cheaper than an ICE alternative at three years old and 14% cheaper at four years old.

SMMT chief executive Mike Hawes said that the rapid growth of the used electric car market was to be welcomed but cautioned that if the new car market does not improve, it could limit second-hand options.

He commented: “Growth in the used car sector is good news and driven by an outstanding range of desirable and, increasingly, zero emission vehicles to suit every budget. Maintaining this depends on a healthy new car market, particularly for EVs.

“Giving consumers the confidence to switch from their familiar petrol or diesel vehicles requires confidence and incentives otherwise many would-be new car buyers will sit on their hands, leading to a diminishing market that will inevitably limit used car availability and affordability. This will be to the cost of motorists, the economy and the environment – making a review of support for the transition and the regulation intended to deliver it, an urgent priority.”

The used data comes hot on the heels of new car figures which show that EVs were the only segment to grow in October. SMMT figures for last month showed that while sales of petrol, diesel and all varieties of hybrid fell, pure EV registrations jumped 25%.