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Used EV Sales Hit Record in UK as Industry Flags Tax Risks

Industry leaders warn proposed taxes on employee car schemes would shrink the flow of nearly new electric cars into resale channels.

Overview

  • SMMT reports 80,614 used battery-electric cars changed hands in Q3, lifting BEV share of the used market to 4.0% from 2.8% a year earlier.
  • Total UK used-car transactions reached 2,021,265 in the quarter, a 2.8% year-on-year increase.
  • SMMT chief Mike Hawes says taxing vehicles acquired through Employee Car Ownership Schemes as company cars risks closing those schemes and cutting the supply of the latest models to second-hand buyers.
  • Industry estimates cited by SMMT indicate such changes could reduce new registrations by about 80,000 a year, limiting the number of nearly new electrified cars entering resale.
  • Separately, The Telegraph reports the Chancellor is weighing a 3p-per-mile charge for EVs from 2028—about £12 for a LondonEdinburgh trip—with self-reported mileage, a plan not confirmed by the government.