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The UK’s used car market continued its steady momentum in the third quarter of 2025, marking the eleventh consecutive period of growth. Transactions rose by 2.8% to surpass two million, the best Q3 result since 2021. Amid a persistent cost-of-living crisis, more Britons are turning to reliable pre-owned models as a practical alternative to new vehicles.

The Ford Fiesta once again topped the charts as the UK’s best-selling used car, ahead of the Vauxhall Corsa and Volkswagen Golf. The supermini segment remained the most popular, accounting for 32% of all sales and reflecting buyers’ preference for compact, efficient cars.

While petrol and diesel cars still dominate, electrified vehicles are rapidly gaining ground. Sales of used BEVs jumped by 44.4% to a 4% market share, and HEVs rose by 30%. Models such as the Nissan Leaf, VW ID.3, and Tesla Model Y are among the fastest-moving on the market. Analysts point out that falling prices and increased supply from expiring lease contracts have made EVs far more accessible to buyers.

Regionally, the South East led the way in used car transactions, followed by the North West and West Midlands. The average age of vehicles in circulation climbed to 9.5 years, with one in five cars now over a decade old. At the same time, 5% of used car sales involved vehicles under a year old, many originating from corporate ownership programs.

A key issue overshadowing the sector is the potential abolition of the Employee Car Ownership Scheme (ECOS). According to SMMT, scrapping it could remove around 80,000 new registrations annually and reduce the flow of nearly-new cars, particularly electrified ones, into the used market.

SMMT chief executive Mike Hawes warned that a healthy used EV market is essential for fleet renewal and affordable access to electrified mobility. If ECOS disappears, the shift to electric could slow and consumers could face a narrower range of options.

Industry observers expect demand for used EVs to keep climbing, though pricing and tax policy will remain decisive factors. For now, the UK’s used car market stands out as one of Europe’s most resilient automotive sectors.