11:48 am, July 19, 2023
Trade prices in the used EV sector fell by just 1.4 per cent to £22,100 during the second quarter of this year, according to Aston Barclay.
The £329 drop reported for electric vehicles with an average age of 30 months and mileage of 22,128 miles is more evidence that the sector is settling down, says the auction house.
It commented that Tesla’s new car price reduction continued to have a bearing on lower prices in the used EV market, which was helping to stoke demand while remaining the aspirational brand in the sector.
Aston Barclay added that some EV prices were even showing signs of being on a par with their ICE equivalent for the first time, making choosing between petrol and diesel and an EV more straightforward for customers.
The biggest Q2 losers were hybrids. They fell by 5.6 per cent (£1,198) to £18,280, despite the average age dropping to 47 months and mileage to 45,786 miles.
With EV prices falling, more used car buyers are moving straight to electric from petrol or diesel rather than using a hybrid as a stepping stone, which has reduced demand, said Aston Barclay.
Another trend influencing demand and prices during Q2 was buyers avoiding buying used cars that needed major work. That was attributed to increasing repair times and ongoing delays with parts supplies.
The fleet sector benefited most from the trend, said Aston Barclay, with fleet prices falling by just £61 to £16,643 from Q1 to Q2, despite the average age rising by one month to 42.2 months and average mileage going up by 2,421 miles to 37,395 miles.
Director of sales Nick Thompson said: ‘We have seen used EV prices stabilise in Q2.
‘What is significant is that dealers are reporting that some used EVs and equivalent model ICE cars are reaching price parity, which will mean a used EV should appear on more driver shortlists when replacing their next used car.
‘The next challenge for the market is the lack of appetite from buyers to purchase used cars in need of major repairs.
‘This will require vendors to revisit their reserve prices or refurb the used car before it goes under the hammer.’
