Ritika Janiya
The used car market in the UK is undergoing a dramatic shift, with electric vehicles (EVs) seeing a massive surge in sales. Over the last few months, more than 53,400 second-hand electric cars have been sold, marking a remarkable 57% increase in sales compared to the same time last year. This rise in used EV transactions has not only broken records but also led to a notable change in the market share of electric cars in the used car sector. In just one year, the share of electric vehicles in the used car market has grown from 1.8% to 2.7%.
The increased demand for used EVs reflects a broader shift towards greener transportation options, as more people recognize the benefits of electric cars. The market for low-emission vehicles is booming, with sales of plug-in hybrid vehicles also up by 29%, while hybrid vehicle transactions have increased by 35.8%. These numbers suggest that British drivers are increasingly seeking eco-friendly alternatives to traditional petrol and diesel cars.
The used car market overall has been growing as well. Between July and September 2024, 1.96 million used cars were sold, which is a 4.3% increase compared to the same period in 2023. This growth is especially notable because it marks the seventh consecutive quarter of year-on-year growth in the used car market. According to the Society of Motor Manufacturers and Traders (SMMT), this steady increase in sales is a positive sign for the overall automotive industry.
Why Are Used Electric Vehicles Becoming Popular?
Several factors are driving the growing demand for used electric vehicles. One key reason is that many electric vehicles are now more affordable, especially in the second-hand market. This affordability is partly due to companies like Octopus Electric Vehicles, which take the initial financial risk by purchasing new electric car models and making them available to consumers at a lower cost through salary sacrifice schemes.
Fiona Howarth, the CEO of Octopus Electric Vehicles, highlighted that the government’s continued support for salary sacrifice and the introduction of strong zero-emission vehicle (ZEV) mandates have helped make electric cars more accessible. These initiatives are helping to create a thriving second-hand market for electric vehicles, where used EVs are becoming an increasingly attractive choice for buyers.
Moreover, many drivers are starting to see the value in electric cars. According to Quentin Willson, Founder of FairCharge, used EVs are gaining popularity because consumers recognize their lower running costs and minimal maintenance needs compared to traditional petrol or diesel vehicles. As more models enter the market, some used electric cars are now priced similarly to, or even less than, their petrol or diesel counterparts. This makes EVs an appealing option for drivers looking for affordable, low-maintenance vehicles.
Challenges Remain Despite Growing Sales
While the rise in used electric vehicle sales is certainly a positive development, there are still challenges that need to be addressed in order to make the transition from petrol and diesel vehicles to electric cars smoother for more people. Mike Hawes, CEO of SMMT, emphasized that maintaining growth in the used EV market depends on a healthy new car market, especially for electric vehicles. Without strong support for new electric car sales, there may be fewer options for consumers to choose from when looking for second-hand EVs.
Additionally, confidence in the EV market needs to continue growing. This can be achieved through incentives and government support. For instance, the return of the Plug-in Car Grant, which provides financial assistance to buyers of electric cars, could help encourage more people to switch to EVs. Price reductions from car manufacturers could also play a crucial role in making electric vehicles more affordable and attractive to potential buyers.
What Do British Drivers Prefer?
As the market for used cars continues to expand, petrol and diesel vehicles still dominate the used car market, accounting for 91.7% of all sales. Petrol car sales have increased by 5.7%, while diesel vehicle transactions have fallen by 3.9%. However, the popularity of electric and hybrid vehicles is growing, and it is expected that this trend will continue as more drivers make the switch to greener alternatives.
The Ford Fiesta remains the most popular used car in the UK, with almost 78,000 transactions recorded in the third quarter of 2024. Other popular models include the Vauxhall Corsa, Volkswagen Golf, Ford Focus, Vauxhall Astra, Mini, and BMW 3 Series. While these cars are still in high demand, the growing interest in electric cars signals a shift in consumer preferences.
Looking Ahead
The future of the used electric vehicle market looks promising, but there is still work to be done to ensure that this growth is sustainable. Continued government support, price cuts from manufacturers, and increased consumer confidence in EVs will be key to ensuring that the transition from petrol and diesel cars to electric vehicles is successful.
In the coming years, we can expect the popularity of used electric cars to continue rising. As more people recognize the financial and environmental benefits of driving electric, the demand for second-hand EVs will likely increase. However, for this growth to be truly sustainable, it will be important for the government and the automotive industry to continue offering support and incentives to make electric vehicles more accessible to everyone.
