Drivers could be 'deprived' of affordable second-hand cars with looming Budget change

The Ford Fiesta remains the most popular second-hand vehicle on the market
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The UK market saw a record number of second-hand electric cars sold over the summer as an increasing number of drivers transitioned away from petrol and diesel vehicles.
Fresh data shows that uptake of used electric vehicles soared by 44.4 per cent in the third quarter of 2025, taking the market share to an impressive four per cent.
With one in 25 motorists now investing in an electric vehicle, manufacturers will be doing more to push away from petrol and diesel. More than 80,000 used EVs were sold over the last three months.
The wider used car market also impressed, growing by 2.8 per cent to reach more than two million transactions, marking the best Q3 since 2021.
Research from the Society of Motor Manufacturers and Traders (SMMT) revealed that second-hand petrol models remained the most popular with 1.15 million sales.
Despite this, transactions only grew by 1.9 per cent, while diesel fell by 2.8 per cent to less than 660,000 second-hand sales.
Sales of used internal combustion engine vehicles accounted for 89.2 per cent of all cars, as interest in EVs and hybrids continues to grow.
The South East of England saw the highest number of transactions with 293,000, followed by the North West and the West Midlands, which both saw more than 200,000 registrations.

The Budget could spell the end of Employee Car Ownership Schemes
|PA/GETTY
The average age of the UK vehicle parc continues to rise at 9.5 years, although almost 100,000 cars sold were under a year old.
Mike Hawes, chief executive of the SMMT, said a robust used car market was "essential" for businesses, especially since more people are looking to switch to electric cars.
He added: "However, overall consumer choice and affordability are at risk if the Government scraps Employee Car Ownership Schemes, a move that would stifle supply of the very latest vehicles into the used market and cut Exchequer revenue.
"Britain needs fiscal policy that promotes rather than prevents economic growth, social mobility and decarbonisation."
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The SMMT highlighted that many of the vehicles entering the used car market would have come from Employee Car Ownership Schemes (ECOS), although this could be impacted by Chancellor Rachel Reeves in the upcoming Autumn Budget.
Reports have suggested that the Government is planning to scrap ECOS, despite the damage it would do to the second-hand market, with businesses and drivers potentially turning their backs on more expensive models.
Modelling from the SMMT suggests that around 60,000 workers across the UK would be "deprived" of personal transport.
It would also cause the Government to lose £1billion in revenue, while 5,000 manufacturing jobs could be put at risk if the Chancellor were to make changes on November 26.

The Ford Fiesta was the most popular used car in the UK in Q3 this year
| FORDThe 10 best-selling second-hand cars in Q3 of 2025
- Ford Fiesta - 78,062
- Vauxhall Corsa - 64,585
- Volkswagen Golf 58,412
- Ford Focus - 55,888
- BMW 3 Series - 39,935
- Volkswagen Polo - 39,706
- Mini - 39,115
- Vauxhall Astra - 38,462
- Nissan Qashqai - 36,933
- Audi A3 - 32,687









