Used EV Market Growth

What’s happening

In 2026, the used EV market is expected to expand significantly, with more than 500,000 electric vehicles returning off-lease from contracts signed between 2023 and 2024. This influx will increase both availability and model choice across the used EV market.

At the same time, the expiry of federal EV tax credits in late 2025 has shifted demand away from new vehicles and towards the used market. Analysts expect used EV sales to outperform internal combustion engine vehicles, supported by improving battery performance, remaining manufacturer warranties, and growing consumer confidence in electric drivetrains.

Why this matters for UK businesses

For UK SMEs, the growth of the used EV market presents a practical route to reducing fleet emissions without the premium cost often associated with new electric vehicles. Lower purchase prices, reduced fuel and maintenance costs, and improving charging infrastructure all strengthen the business case.

Adopting used EVs can also support wider sustainability and net-zero ambitions, helping businesses respond to client expectations, procurement requirements, and emerging environmental reporting standards.

Key facts at a glance

• Used EV sales are projected to increase by 47% by 2026

• Greater availability of used EV models and wider brand choice

• Strong demand driven by remaining warranties and modern EV technology

• Wholesale used EV values forecast to rise by around 2% amid stable demand

SBS insight

As the used EV market matures, businesses have a clear opportunity to transition company fleets more quickly and cost-effectively. Used electric vehicles can deliver immediate carbon reductions, lower operating costs, and improved resilience against fuel price volatility.

At SBS, we support businesses to assess fleet emissions, evaluate EV options, and build practical transition plans that align cost savings with long-term sustainability goals.

Further reading

End of Federal EV Tax Credits (Expired September 30, 2025):
https://www.caranddriver.com/features/a69879073/automakers-pull-back-on-evs/