Used car market returns to pre-pandemic levels

Sales of used cars in the second quarter of 2025 grew 1.7% to almost 2 million, new data from the Society of Motor Manufacturers and Traders (SMMT) has shown. The rise, the 10th consecutive quarter of growth, brings half-yearly sales within 1% of pre-pandemic levels.

The quarter saw petrol car sales dominate sales, representing more than 1.1 million units, rising 1.5%, while sales of diesel vehicles declined 4.3% to just below 665,000.

Although second-hand electric vehicles continued to grow their market share, traditional fuels continued to account for more than 90% of vehicles changing hands. With hybrid and battery electric vehicles representing less than one in 10 used car sales, further growth in this area will hinge on other measures to drive EV uptake in the new car market.

Meanwhile, sales of new vehicles stalled, with July 2025 seeing the sector’s weakest performance in three years, with sales down 5% year-on-year, and down nearly 15% for petrol cars, highlighting the volatility of the market and wider economic uncertainty. Sales of plug-in hybrid and battery electric vehicles, however, bucked the wider market trends to see 33% and 9.1% growth in sales respectively.

Despite growth, BEVs still saw their second slowest month of growth this year, likely due to pending confirmation of vehicles supported by the recently announced Electric Car Grant scheme, offering discounts of up to £3,750 for eligible vehicles. The measure is aimed at boosting uptake of electric cars, with market share currently still below the 28% requirement in the government’s Zero Emission Vehicles Mandate, and follows the lead of grants in the commerical vehicle market that have been successful in driving sales.

Commenting on falls new car market, Mike Hawes, SMMT Chief Executive, said:

“July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty. Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.“