Used Car Market Flat in Q1 But Sales in EVs and Hybrids Surge
The Society of Motor Manufacturers and Traders (SMMT) report a flat used car market in the first quarter of 2026, but with strong growth in the EV and Hybrid car markets.
Used car market volumes were flat during the first quarter of the year showing a slight downturn of just -0.2% representing 2,016,232 sales.
This ended a growth run of 12 consecutive quarters with March representing the worst month with transactions falling -2.3%. March 2025 was the only March that exceeded 700,000 sales since 2017, so this significant drop is perhaps a measure of changing minds during an oil crisis.
Electric Vehicles
However, there is some signs of growth with Battery Electric Vehicle (BEV) transactions surging by 32.0% as volume and market share reach new records with 86,943 vehicles changing hands.
The SMMT said “This is the result of sustained investment by manufacturers into new models, enabling a massive choice of new zero emission vehicles in every segment – supported by substantial discounts and government incentives – which are filtering into the used market in ever greater numbers.“
Hybrids
Hybrid’s (HEV) also demonstrated strong demand as transaction grew 27.6% to 128,039 units, while plug-in hybrids (PHEVs) significantly dropped by -8.9% to 20,021 units, despite showing strong growth in new vehicle registrations.
Combined, electrified vehicles accounted for 11.7% of used cars finding new owners in Q1, according to the SMMT.
Petrol and Diesel Cars
Petrol transactions fell -0.6% to 1,147,969 units, but remains the most traded used car of any fuel type, while diesel sales collapsed with a -6.7% decline to 629,987 units, which the SMMT attributes to “reflecting reduced supply from the new car market”.
Despite this, conventionally fuelled cars still accounted for 88.2% of total transactions in the first quarter due to the sheer numbers in circulation.
Vehicle Type
The most popular choice of car in the used market are supermini’s, yet sales fell -1.0% with 648,229 units being sold. Supermini’s account for 32.2% of the market, which is a wonder why some manufacturers are ignoring this data with the likes of Ford discontinuing the Fiesta.
Lower medium sized cars was the next biggest segment, with 546,249 exchanging cars representing a 27.1% share.
Mike Hawes, SMMT Chief Executive said “The UK’s used car market remained flat in the first quarter, held back by weakness in March in comparison with a very strong performance in 2025.
Better news is the record demand for used electric vehicles, as growing choice from manufacturers feeds through into the second-hand market. High fuel prices, given the conflict in Iran, may increase demand even further, but to maintain this momentum, every fiscal and policy lever must be pulled to ensure a healthy new car market that delivers the zero emission vehicles in volume to flow through to the used market.”
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About the Author
Graeme Cobb is a lifelong car enthusiast with a passion for writing about cars, EVs, industry updates and more.
You can find Graeme on 𝕏 at @graeme_cobb or YouTube @REV-EV.