The UK’s used electric vehicle market has hit a significant milestone, with the total value of used EVs for sale recently surpassing £1billion, according to data from Marketcheck UK.
This reflects the growing volume of second-hand electric vehicles available, driven by both an increase in supply and a drop in prices. A combination of tax breaks and subsidies for new electric cars has caused used EV prices to weaken, but this is creating a positive environment for buyers looking to make the switch to electric at a lower cost.
Increasing supply of used EVs
Data from Marketcheck UK shows that the number of used EVs available for sale from dealers has grown substantially since January 2023.
At the start of last year, there were just 20,196 EVs listed for sale. By mid-2024, this number had surged to over 37,000, largely due to the influx of models returning from lease deals and fleet sales.
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Last year, more than 315,000 EVs were registered in the UK
ANDY HUGHES
This increase in supply is expected to continue, driven by a steady rise in new EV registrations over the past few years.
EVs generally re-enter the market around three years after their original sale, meaning that the growth in new EV sales from 2021 onwards will soon impact the used car market.
• 2021 new EV registrations: 199,527
• 2022 new EV registrations: 293,203
• 2023 new EV registrations: 315,484
In 2024, EVs registered in 2021 will start to return to the used market, with an even greater number following in 2025 and 2026. As the market is growing with these vehicles, buyers will have far more choices than ever before.
Top selling models and market share
While the supply of used EVs is growing, certain models remain favourites among second-hand buyers. Data from Marketcheck UK highlights that the Nissan Leaf was the UK’s best-selling used electric vehicle, accounting for 8.6 per cent of all used EV sales in 2023.
In 2024, the top seller is still the Tesla Model 3, with an 8.7 per cent share of the market. These models dominate the landscape, with the Jaguar I-Pace and Kia Niro also among the most popular choices, especially for urban drivers looking for compact vehicles.
Though petrol and diesel cars still make up the majority of second-hand car sales, EVs now account for almost eight per cent of the used car market, up from 3.5 per cent in December 2023. This percentage is expected to rise further as supply increases and prices continue to fall.
Falling prices of used EVs
One of the most significant changes in the used EV market is the drop in prices. While demand for electric cars is strong, the supply of new EVs has been bolstered by Government subsidies and tax breaks, especially for company car purchases.
According to Marketcheck UK, this has created an oversupply in the used market, putting downward pressure on prices.
As a result, used EVs are becoming more affordable, with prices falling by as much as 10 per cent to 20 per cent in some cases over the past year.
The average price of a used EV is now around £26,865 – down from £27,864 in January 2024. This trend is expected to continue as more EVs come onto the market.
For buyers, this creates an ideal opportunity to purchase an electric vehicle at a lower cost.
The weak prices are making used EVs increasingly accessible to a wider range of consumers, including those who may have previously found them out of reach.
In fact, the price drop has been a key factor in driving increased sales of second-hand EVs, as more buyers are attracted to the idea of going electric at a reduced price.
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Experts predict that by 2025, the number of used EVs for sale could more than double
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Future growth in the used EV market
The future of the UK’s used EV market looks promising. With the large number of EVs registered in 2022 and 2023 set to return to the market in the next few years, supply will continue to rise.
This increase in availability, combined with falling prices, will likely make second-hand EVs an even more attractive option for many UK drivers.
By 2025, the number of used EVs for sale could more than double, providing a wider range of choices for buyers and leading to even more competitive pricing.
As the market grows, the proportion of EVs in the used car market could climb to 20 per cent, reflecting the increasing shift towards electric vehicles in both the new and used sectors.
Alastair Campbell, from Marketcheck UK