The UK's used car market remained stagnant in the first quarter of 2026, with drivers continuing to favour petrol and diesel vehicles over electric alternatives. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), 2,016,232 vehicles changed hands between January and March, a marginal decline of 0.2% compared to the same period last year.
Market Performance and Trends
This performance ended a 12-quarter streak of growth, primarily due to a subdued March where transactions fell by 2.3%. The decline is measured against an exceptionally strong March 2025, which was the only March to exceed 700,000 sales since 2017.
Despite the overall flat market, battery electric vehicles (BEVs) saw a significant increase in demand. Transactions of BEVs grew by 32.0% to 86,943 units, meaning nearly one in 23 buyers opted for an electric model, up from approximately one in 30 last year.
Fuel Type Preferences
Petrol remained the best-selling fuel type, although transactions fell by 0.6% to 1,147,969 units. Diesel demand experienced a more pronounced decline of 6.7%, with 629,987 units sold, reflecting reduced supply from the new car market.
Given that used vehicles are the most accessible route into motoring for many consumers, conditions that stimulate fleet renewal are crucial. The average age of the UK vehicle parc now stands at a record high of 9.7 years, up from eight years in 2019. A healthy new car market is essential for generating second-hand supply, particularly for the latest electric models.
Industry Commentary
Mike Hawes, SMMT Chief Executive, commented: "The UK's used car market remained flat in the first quarter, held back by weakness in March compared to a very strong performance in 2025. Better news is the record demand for used electric vehicles, as growing choice from manufacturers feeds through into the second-hand market."
He added: "High fuel prices, given the conflict in Iran, may increase demand even further, but to maintain this momentum, every fiscal and policy lever must be pulled to ensure a healthy new car market that delivers zero-emission vehicles in volume to flow through to the used market."
The data underscores a transitional period in the automotive industry, with traditional fuels still dominant but electric vehicles gaining ground as supply and consumer acceptance increase.
