Used car market returns to growth but challenges lie ahead

The UK’s used car market grew slightly in the second quarter of the year, following a minor decline at the start of 2026.

In total, 2,009,318 passenger cars changed hands between April and June, a rise in transactions of 0.7%. After six months of the year, the used car market has remained stable, with a 0.2% rise in sales.

This steady rate of transactions is a slower trend than recent years. More drivers may be holding onto their cars for longer, while others may be switching to the new car market for electrified technologies. This represents both an opportunity, and a challenge, for the UK aftermarket.

Patchy used car performance

The latest data, released by the SMMT, shows that in April, 688,743 cars changed hands, a rise of 2.5%. This was the best monthly rise in the first half of the year, and more than wiped out the deficit experienced by the sector in March.

Meanwhile, May saw a 1.2% drop in sales, as 680,671 models found new owners. This equated to a fall of 8,525 units year-on-year, according to Auto Repair Focus analysis. June saw a minor increase, of 0.8%, with 639,904 transactions. This was a rise of 5,129 units over the same month last year.

This rollercoaster market performance meant that after six months of the year, 4,025,550 used cars were sold in the UK. This is well below the growth curve seen in recent years. While the country’s new-car market is picking up the pace, sales in the used car sector are slowing down.

Drivers may be waiting to trade in their cars, looking for better deals, or not being enamoured with newer models that are making their way to the market. However, with a rise in battery-electric vehicle (BEV) and plug-in hybrid (PHEV) new car registrations, some may be switching from buying a nearly-new model, to a brand new car, to get the latest powertrain technology.

With an increase in the number of brands in the UK as well, especially cars coming from China, there is more choice than ever before in the new car market. Some of these Chinese models are priced competitively, drawing customers towards them, rather than a decent second-hand model.

But how long this lasts remains to be seen. With a push for BEV technology and targets set that are well above demand, supply into the used car market could falter. If drivers do not buy new vehicles, their older models will not be available for sale. In addition, less newer vehicles will be offered for sale in a few years time.

But if UK car parc figures remain stable, then this will suggest drivers are holding onto their cars for longer. With this in mind, garages will be called upon to service these models, keeping them on the road as they age.

BEVs rapid rise

“A return to growth is good news for motorists and the wider automotive sector, with sales of used EVs rising particularly strongly as more choice reaches more buyers,” commented SMMT Chief Executive Mike Hawes.

“As the used market is where most people buy their cars, plentiful and affordable supply is vital, however, increasingly unrealistic targets in the new car market risk constraining that supply and pushing up costs. Urgent regulatory reform is needed to deliver a transition that works for every driver.”

BEVs were the standout performer of the second quarter. With 110,671 sales, their numbers shot up 61% compared to the same three months of last year. More drivers are turning to the used car market for the technology, with more availability thanks to increased new car sales in recent years.

However, transactions of PHEVs dipped again, with 22,856 units marking a drop of 6.2% year on year. It seems there may not be enough supply. However, with the success of Chinese models, including the Jaecoo 7 PHEV, this situation may change in a few years’ time.

Full hybrids saw 130,825 transactions, good enough for a 30.7% increase in used car sales. The technology is also an ever-present stay on UK roads.

But while electrified technologies pushed figures up, except for PHEVs, the petrol and diesel market struggled. Yet these still remain the most popular powertrain types. Petrol transactions reached 1,121,243 units, a fall of 1.2% in the second quarter. Meanwhile diesel sales fell 6.7%, with 620,045 cars changing hands.

Fiesta tops used car market again

Superminis remained Britain’s best-selling used car type, accounting for 31.7% of demand, with volumes rising 0.2%. The lower medium segment followed, with a 26.6% market share and a 0.2% increase. Dual purpose cars recorded the strongest growth, up 7.4% to secure 17.7% of overall sales.

The Supermini market was helped by the Ford Fiesta which was, once again, the best-selling used car in the UK. With 73,570 transactions, it was comfortably ahead of the Vauxhall Corsa, with 59,247 transactions. Meanwhile, the Volkswagen Gold took third, with 55,786 sales.

Following the trend in the new car market, monochrome colours dominated, with 1,134,536 used cars sold in black, grey or white. All three recorded growth in the quarter, up 0.7%, 4.1%, and 4.7%, respectively, and together accounted for 56.5% of the market. Blue ranked fourth despite a 1.1% decline, while silver retained fifth place despite a 6.4% decline in sales.

Latest News