London, 10 November 2025 – The UK’s used car market has maintained its upward trajectory, recording 2,021,265 transactions in the third quarter of 2025, a 2.8% increase on the same period last year, according to the Society of Motor Manufacturers and Traders (SMMT). This marks the strongest Q3 performance since 2021 and extends a remarkable 11-quarter growth streak, buoyed by a recovering new car market that has boosted the availability of stock.
Petrol-powered vehicles remain the backbone of the market, with sales rising 1.9% to 1,145,148 units, while diesel transactions fell by 2.8% to 658,664. Overall, internal combustion engine vehicles accounted for 89.2% of all used car transactions, representing a slight decline year-on-year as alternative fuel vehicles continue to gain traction.
Electrified Vehicles Surge
Hybrid electric vehicles (HEVs) showed substantial growth, rising 30% to 107,727 units and claiming a 5.3% market share. Plug-in hybrids (PHEVs) increased 2% to 23,480 units, representing 1.2% of the market. Battery electric vehicles (BEVs) recorded the fastest growth, up 44.4% to 80,614 units, giving a record market share of 4%. This surge reflects rising consumer interest and the increasing availability of low- and zero-emission vehicles from the new car market.
Popular Models and Segments
Superminis remained the most popular used car segment, with 649,859 transactions (+1.8%), accounting for nearly a third of all sales. Lower medium cars followed closely at 543,094 units (+2%). Dual-purpose vehicles, including SUVs and crossovers, recorded the highest segment growth at 9.3%, reaching 339,628 transactions. Conversely, specialist sports cars declined 8.6% to 55,088 units, while upper medium and executive models fell 2.8% and 0.9%, respectively.
Colour Trends and Vehicle Age
Black and grey continue to dominate as the most popular used car colours, up 3.1% and 6.3%, respectively, with white (also up 6.3%) overtaking blue to secure a place in the top three. Cream (+10.1%) and green (+9%) showed the strongest growth, while maroon and pink vehicles remained niche choices.
The average age of the UK vehicle parc has increased to 9.5 years, up from eight years in 2019. Despite this, 99,313 vehicles under a year old – a third electrified – were sold in Q3. Many of these originate from Employee Car Ownership Schemes (ECOS), which provide affordable access to nearly new, low-emission vehicles.
Policy Risks Could Impact Supply
SMMT has raised concerns over government proposals to levy company car tax on ECOS vehicles, which could remove around 80,000 new cars from the market annually, undermining the supply of high-quality, nearly new cars for used buyers. The move could also restrict mobility for 60,000 automotive workers, jeopardise £1 billion in industry revenue, put 5,000 manufacturing jobs at risk, and hit the Treasury with a half-billion-pound loss in VAT and Vehicle Excise Duty receipts.
SMMT Chief Executive Mike Hawes 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. However, overall consumer choice and affordability are at risk if the government scraps Employee Car Ownership Schemes. Britain needs fiscal policy that promotes, rather than prevents, economic growth, social mobility, and decarbonisation.”
Outlook
The continued growth of the used car market, especially for electrified vehicles, highlights both the resilience of UK consumers and the pivotal role of policy in supporting the transition to sustainable motoring. With demand for BEVs rising sharply, ensuring a steady supply of nearly new vehicles will be crucial to maintaining affordability, choice, and momentum in the shift to a lower-emission future.
