Used EV searches up nearly 50% as Polestar's UK boss calls for a used EV grant

Searches for used electric cars on AA Cars rose 49.6% in September 2026 compared with a year earlier, according to the AA Used Car Index reported by Bodyshop Magazine. Used EV values are now rising while every other fuel type falls, and Polestar’s UK boss, Matt Galvin, wants the government to add a grant for used EV buyers. The Autumn Budget on 28 October did not include one.

For a UK driver, that means two things. Used EV values are no longer sliding: demand is outpacing supply and values have turned. And there is no public money coming to help used buyers, so the price on the forecourt is the price. Below are the latest figures, the case for a used EV grant, the case against, and our estimate of what one would cost.

How much has used EV demand risen?

The “nearly 50%” figure comes from AA Cars, and it measures searches on its site rather than sales. Searches for used EVs rose 49.6% in September, after a 37% rise in August. Other measures point the same way, though by different amounts.

Measure	Figure	Period	Source
Used EV searches on AA Cars	Up 49.6% year on year	September 2026	AA Cars
Used EV demand on Autotrader	Up 40% year on year	September 2026	Autotrader
Used EV supply on Autotrader	Up 26% year on year	September 2026	Autotrader
Used BEV transactions	110,761, up 67%	April to June 2026	SMMT
Used BEV share of all used sales	5.5%, up from 3.3%	April to June 2026	SMMT

Autotrader’s figures, reported by Car Dealer Magazine, matter most for prices: when demand grows faster than supply, asking prices rise. Electric was the only fuel type with annual price growth in September, up 2.8% to an average £25,091.

It is worth keeping the scale in view. The SMMT says petrol and diesel still made up 86.7% of used car sales in the second quarter. Used EVs are growing quickly from a small base.

What are used EVs worth now?

Solera Cap HPI’s October data, reported by EV Fleet World, shows used EVs bucking a weak month. Across the market, values at three years and 60,000 miles fell 1.7%, or £350, more than the usual 1.4% October drop. Battery EVs rose 0.6%, or £70.

Fuel type	October change	2026 so far	Days to sell (October)
Battery electric	Up 0.6%	Down 4.7%	32
Hybrid	Down 1.8%	Not reported	Not reported
Plug-in hybrid	Down 1.9%	Down 9.9%	Not reported
Petrol	Down 2.2%	Down 8%	35
Diesel	Down 2.6%	Down 11.7%	38

Source: Solera Cap HPI, three years and 60,000 miles.

“Used electric cars are performing well, particularly at the more affordable end of the market,” said Chris Plumb, head of current car valuation at Cap HPI. He said buyers are becoming more comfortable with EV technology and that high fuel prices are prompting more people to consider switching. EV Fleet World’s report adds that used values are expected to come under further pressure as wholesale supply increases towards the end of the year.

The biggest risers in October included the Vauxhall Mokka Electric (up 4%, £370), Kia Niro EV (up 3%, £385), Peugeot e-2008 (up 2.4%, £250) and Kia EV6 (up 2%, £380). Our earlier report on used EV values rising as diesel slumps covers the September picture.

Which used EVs are people looking for?

AA Cars says the most searched used EVs in the third quarter were the Nissan Leaf, Tesla Model 3 and Renault Zoe. The ten most searched used electric models averaged four years old, against 7.7 years for the most popular petrol and diesel models, and the average used EV price was £18,633.

That average is lower than Autotrader’s £25,091 because the two measure different things: AA Cars looks at what people search for, Autotrader at what is advertised. Either way, buyers are looking at affordable, well known models. “Used electric cars are becoming an increasingly attractive option for motorists,” said James Hosking, managing director of AA Cars. He added that for drivers who can charge at home, an EV can offer significant savings on running costs.

The Hyundai Ioniq 5 is another strong option; Auto Express named it Used Car of the Year, as we report in our Used Car of the Year story.

What is Polestar asking for?

Matt Galvin, managing director of Polestar UK, has been calling for a used EV grant for more than a year. Ahead of the Budget, Motor Trade News reported that he renewed the call, pointing to used EV demand up 40% and to Polestar’s own pre-owned sales, which the company says have doubled. He also asked the Chancellor to cut VAT on public charging to 5% and to pause EV-specific taxes until electric cars make up the majority of cars on the road. The Budget kept VAT on public charging at 20%.

His argument, set out to Auto Express in January, is that a grant would support residual values and bring more people into EVs. “It’s a really big missed opportunity,” he said, adding: “The Netherlands did it so I can’t see why we can’t.”

He has also suggested how to pay for it. In 2025 he told Car Dealer Magazine that fines paid by car makers who miss ZEV mandate targets could fund incentives for new and used cars, noting “that’s not taxpayer money”.

Polestar is not a neutral voice: a used EV grant would support the value of its cars, most of which are priced above the Electric Car Grant’s £37,000 cap. Our report on Polestar’s UK sales gives the background. But the idea is not Polestar’s alone: the leasing trade body BVRLA asked for a used EV grant, among other measures, in 2024.

How did the Dutch used EV grant work?

The Netherlands ran the SEPP scheme from 2020. According to the Dutch government agency RVO, private buyers or private lessees of a used fully electric car could claim €2,000 in 2024. Auto Express reported that it applied to used EVs priced between €12,000 and €45,000. The last day to apply was 27 December 2024 and the scheme has closed.

That gives a useful model. It was a flat sum, for private buyers only, with a price band that kept it away from the cheapest and most expensive cars.

Did the Budget include a used EV grant?

No. The Budget on 28 October left the Electric Car Grant for new cars unchanged at up to £3,750 for Band 1 cars or £1,500 for Band 2, according to Octopus EV, and introduced nothing for used buyers.

It also did not answer calls to tax used company EVs on their depreciated value. The government set company car tax for EVs at 10% in 2030/31, and drivers of used EVs on salary sacrifice are still taxed on the original list price, EV Fleet World reports. We covered that ask in our report on company car tax for used EVs, and the wider list of Budget requests in our Budget preview.

What would a used EV grant cost?

Nobody has published a costed UK proposal, so here is a rough estimate of our own, with the inputs stated.

• Grant size: £2,000, close to the Dutch €2,000.
• Volume: SMMT recorded 110,761 used battery EV transactions in the second quarter of 2026. Multiplied by four, that is about 443,000 a year.
• Cost if every transaction qualified: 443,000 × £2,000 = about £886m a year.

That is an upper limit and a rough one. SMMT’s figures count changes of keeper, and not every one of those is a private retail purchase that a grant would cover, so the real number would be lower. A price band like the Dutch one would cut it further. Volumes are also rising, which would push the cost up.

Against the average used EV price of £18,633 from AA Cars, £2,000 is about 11% off. Against Autotrader’s average asking price of £25,091, it is about 8%.

What is the case for a used EV grant?

• Most people buy used. Around two million used cars change hands each quarter, according to SMMT. New car grants reach a minority of buyers.
• It reaches lower budgets. The Electric Car Grant helps people who can afford a new car. A used grant would help people buying at £10,000 to £20,000.
• It supports values. Galvin argues it would shore up residual values, which in turn makes new EVs cheaper to lease and finance.
• It has been done. The Dutch scheme offers a ready template.

What is the case against?

• Demand is already rising without one. With searches up nearly 50%, Autotrader demand up 40% and EVs the only fuel type gaining value, the market is moving on its own. A grant now would partly pay people to do what they are already doing.
• It could push prices up. When demand already outpaces supply, as Autotrader says it does, part of any subsidy is likely to end up with sellers in higher asking prices rather than with buyers. This is our reading of the market data, not a published finding.
• Cost. On our estimate, an uncapped scheme could cost hundreds of millions of pounds a year, on top of the Electric Car Grant for new cars.
• The Dutch scheme has closed. The Netherlands ended applications in December 2024, which suggests even supporters see such schemes as temporary.

What should used EV buyers do now?

Do not wait for a grant: there is no sign of one, and any future scheme would take time to set up. Instead:

• Check battery health. Our guide to getting a battery health certificate explains what to ask for.
• Use a checklist. Our 15-point used EV buying checklist covers cables, warranties and software.
• Compare with new. For cars under £37,000 new, check the price with the Electric Car Grant and any discounts before buying nearly new.
• Move steadily. Cap HPI says EVs are selling in 32 days on average, so good cars do not hang around, but values are rising slowly rather than jumping.

Our view

The used EV market has turned without help from the Treasury. Demand is up sharply, values are edging higher and EVs sell faster than petrol or diesel. That weakens the case for a used grant right now: the market does not need a push so much as more supply and confidence in battery health. Where a targeted grant could still make sense is at the cheaper end, for buyers on tight budgets who cannot charge at home cheaply and would otherwise keep an old petrol car. For now, buyers should judge used EVs on today’s prices, which have lost less value this year than petrol or diesel, and on whether they can charge at home.