Electric cars took their biggest ever share of the UK used car market in the third quarter (Q3) of 2025, with sales rising faster than all other forms of propulsion in the process. But does this mean buyers are becoming more confident about electric vehicle (EV) technology, or is there now simply more choice? The answer is likely to be a mixture of both these elements and more.
Used car sales in general were strong in Q3. With overall growth of 2.8%, according to figures from the Society of Motor Manufacturers and Traders (SMMT), it topped two million transactions (2,021,265) for the first time in the third quarter of the year since 2021. The second-hand car market has now been on the up for 11 quarters in a row, which the SMMT says is ‘driven by recovery in the new car market enabling a healthy supply of stock.’
However, it’s not all good news, as the SMMT is also keen to stress that changes to taxation impacting employee car ownership schemes (ECOS) represents a significant threat to the supply of high-quality nearly new used car stock.
How have used electric car sales improved?
While that headline is undeniably correct, used electric cars still only represent a 4.0% share of the entire used car market. But in reaching that new record level they have grown 44.4% to 80,614 units – meaning that one in 25 buyers is now choosing to go EV.
Not only is buyer confidence in electric cars getting better, dealers are less wary now as well. According to a November 2025 survey by Startline Motor Finance, the number of retailers ‘who believe electrification is the biggest challenge facing the used car sector’ has fallen from 54% to 37% in the last 12 months.
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An increased amount of used EV stock means such cars are becoming more familiar, to both buyers and sellers, a combination that also serves to naturally boost sales.
Meanwhile, the AA has published its own response to the SMMT figures, pointing out that according to its used car service, the average price of the top 20 most searched for used EVs and hybrids fell 10% in quarter one of 2025. And lower prices always make cars more tempting.
What are the most popular types of used car?
Petrol retains the biggest market share among used cars in Q3 2025, increasing 1.9% to 1,145,148 units; diesel fell 2.8% to 658,664. Collectively, conventional combustion engines like these still make up 89.2% of the total market.
Self-charging hybrids rose 30.0% to 107,727 (a 5.3% share of the market) while plug-in hybrids grew 2.0% to 23,480 (1.2% market share).
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Superminis remain the most popular kind of used car, with the number one used car in Q3 being the Ford Fiesta at 78,062 examples sold – ahead of the Vauxhall Corsa on 64,585. Rounding out the top three was the Volkswagen Golf, with 58,412 sold.
Although Ford no longer makes the Fiesta, and this model has shown some fairly significant reliability issues recently (wet belt problems on Ecoboost engines in particular), its position at number one is no real surprise. The figures not only reflect the appetite for smaller cars but also the vast availability of used Fiesta stock. Historically it had been the bestselling new cars for years, right up until its demise.
Why might employee car ownership schemes threaten used car sales?
The SMMT believes that the UK government’s plan to levy company car tax on ECOS vehicles potentially threatens some 80,000 new car sales that these schemes currently generate every year.
This would impact the supply of high quality used car stock by the same amount, and mean ‘more than £1 billion in revenue would be lost to the [UK automotive] industry.’ This could in turn ‘put 5,000 manufacturing jobs at risk’, and would mean a £500 million loss in VAT and Vehicle Excise Duty (car tax) to the Treasury.
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SMMT chief executive, Mike Hawes: ‘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 for more motorists. However, overall consumer choice and affordability are at risk if the government scraps Employee Car Ownership Schemes, a move that would stifle supply of the very latest vehicles into the used market and cut Exchequer revenue. Britain needs fiscal policy that promotes rather than prevents economic growth, social mobility and decarbonisation.’
What this means for you
If you’re shopping for a used car – and with the cost of new cars being so much higher than a few years ago, many people are – the quarter three figures suggest there’s now greater choice than ever. And if you’ve been looking to make the move to electric there’s now more quality used stock, and keener pricing.
If the SMMT is to be believed, however, incoming tax changes could negatively impact these buoyant figures. So if you want the best possible choice of quality used cars, it might be worth shopping sooner rather than later.
The expert’s view: Electric cars still need to be chosen carefully
Don’t get me wrong – I’m generally all for electric cars. They largely offer great performance, are quiet inside, and should be easy to maintain as well. But they don’t work for everyone, they do require a little more planning (on longer journeys, and to keep them charged), and they’re not universally excellent, either. There are some very poor low-cost examples, and some premium brands have consistently exhibited poor reliability issue as well.
My point is that you must do your research. Read our reviews, learn about the Parkers award winners, check out our lists of the best cars in every category, and take a look at our charging and ownership advice as well. Together we can work out the best used – or new – car for you.
cj hubbard – Head of the Bauer Digital Automotive Hub
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