Britain’s used car market recorded a bumper year with second-hand EV sales surging.
Used car sales were up 5.5 per cent 2024, latest figures from the Society of Motor Manufacturers and Traders show.
Over the course of 2024 a total 7,643,180 used vehicles changed hands and electric cars saw a surge in demand.
Pre-owned EVs sales rose 57.4 per cent to take 2.5 per cent of the total market.
This record level of demand for electric cars has been hailed as a ‘good sign’ for both customers and the Government as it pushes towards its net zero targets.
Colin Walker, head of transport at the Energy & Climate Intelligence Unit, said: ‘It is no coincidence that such strong sales growth comes on the back of EVs largely reaching price parity with petrols on the second-hand market.
‘It demonstrates that once prices come down, the demand for electric driving is very much there.’
There was a 5.5% rise in used car transactions in 2024 with pre-loved EVs driving growth to take 2.5% share of the market
With 188,382 second-hand EVs sold in 2024, it means a market share 13 times larger than 2019.
Sales of plug-in hybrid vehicles and hybrids also grew, up 32.2 per cent to 92,120 units and 39.3 per cent to 306,114 units respectively.
Combined, the number of used electrified vehicles changing hands increased by 43.3 per cent on 2023, with more than half a million of these ultra low or zero emission motors accounting for a 7.7 per cent share of sales.
James Hosking, managing director of AA Cars, said: ‘With more electric and hybrid vehicles entering the second-hand market, buyers now have a wider selection than ever, helping to drive demand.
‘This surge underscores a key consumer trend — affordability is king. With household budgets under strain, many are opting for nearly new models over splashing out on a brand-new car.’
However industry figures are warning people to not jump ahead and take the growth for granted.
More choice in the used EV market and increased ‘affordability’ has made pre-loved EVs much more appealing and accessible
Petrol is still the most dominant overall fuel type in the used car market, SMMT figures show
April marks the moment that many BEVs registered in the new car market will be subject to Vehicle Excise Duty and the Expensive Car Supplement (ECS) – drastically increasing ownership costs during the first six years of a vehicle’s use and therefore likely to impact on the used market.
The eligibility threshold for BEVs has remained unchanged since 2017, and so sales of zero-emissions cars are likely to see a large disincentive effect take place as owners are faced with huge tax bills.
Chris Knight, VP, Automotive at NTT DATA UK&I, said: ‘New EV sales growth is slowing, which will filter down to the used market.
‘The upcoming changes to Vehicle Excise Duty to include EVs, with an additional Expensive Car tax for models over £40,000, will undoubtably slow uptake even further.
‘UK EV sales overall are far below government targets, and we lag other markets with stronger incentives in place for EV drivers.
The Government need to do more to encourage people to switch.’
Mike Hawes, SMMT Chief Executive, points out that to ‘ensure ongoing growth’ the ‘affordability’ of EVs must be maintained.
He said: ‘[This] requires meaningful fiscal incentives to stimulate consumer demand for new EVs and removing the VED expensive car tax disincentive that risks dragging down used EV affordability for years to come.’
Used car sales rose across every month of 2024, as they did in 2023, with petrol the dominant fuel choice of customers
Overall transactions of used cars rose every month in 2024, as they did in 2023, with the last three months up 4 per cent to 1,746,051 units.
Petrol and diesel powered cars accounted for 92.1 per cent of all used car transactions – down slightly from 94.3 per cent last year.
Petrol remained dominant, up 6.8 per cent to represent 57.1 per cent of the market, while diesel transactions dropped 2.4 per cent, accounting for 35 per cent of all transactions.
Massive tax hikes for EVs are coming – what will they mean for you?
1 April marks the day EV owners will have to pay VED and ‘Tesla tax’ for the first time
From 1 April, EV owners will be forced to pay Vehicle Excise Duty (VED) for the first time under measures implemented by minsters to make the car tax system ‘fairer’.
The changes will see owners incur a standard rate of £195 per year for all EVs registered from April 2017.
And in a second blow for people in the market for a more luxurious EV, new zero emission cars registered after 1 April 2025 will also be subject to the £425-a-year ‘expensive car tax’ supplement levied on all motors costing over £40,000.
This is dubbed the ‘Tesla tax’ supplement because no vehicles sold by the American EV-maker are priced below the supplement’s threshold.
As such, removal of VED exemption for EVs from April will trigger an annual increase in running costs by as much as £620.
Car magazine Auto Express has estimated that a massive seven in ten battery cars registered in the UK are priced above £40k and therefore eligible to be levied with the expensive additional tax.
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