10:11 am, May 16, 2023
Average used EV prices have tumbled by more than £4,500 since January, despite the wider second-hand market being in good health.
That is according to the latest Auto Trader Retail Price Index which has been investigating the latest trends in used car values.
The data found that electric car prices are continuing to struggle, despite several experts backing them to bounce back in the coming months.
Analysis of the figures revealed that as of May 13, used EV prices were down 17.3 per cent year-on-year and have fallen by a whopping £4,600 since the first month of 2023.
They are also down £9,600 on July 2022, when used EV values reached their peak.
In contrast, the average price of a used petrol (£16,365) and diesel (£16,556) is currently up six per cent and 4.3 per cent respectively year-on-year.
Despite the struggles, there were some signs of recovery for used electric car prices as the rate of contraction softened compared to April’s 18.1 per cent.
Meanwhile, supply growth has eased from a high of 303 per cent in January, to 211 per cent in May, and demand on Auto Trader has increased from 40 per cent to 45 per cent over the same period.
Reacting to the findings, Richard Walker, Auto Trader’s data and insights director, said: ‘Whilst there’s still a significant imbalance of supply and demand in the market, we are beginning to see positive signs of it stabilising.
‘However, it is still early days – there’s currently around 15,000 used EVs for sale on Auto Trader every day, which is up from just 5,000 a year ago.
‘Although this huge surge in supply is forcing a correction in prices, the greater range of affordable choices for car buyers is helping to fuel a solid increase in consumer demand, and with it some promising opportunities for retailers.’
Average used car price reaches £17,946
Auto Trader’s team of experts also found that the average price of a used car now stands at £17,946 – a 3.6 per cent year-on-year increase.
It marks the highest rate of growth since November 2022, and the third consecutive month in a row that the rate of growth has sped up.
May has also seen a month-on-month rise of 0.6 per cent in a highly unusual trend for the time of year, which usually sees prices soften.
Analysts have put the move down to ongoing supply and demand dynamics in the market, with May seeing a 13 per cent year-on-year increase in visits to the marketplace.
Auto Trader’s data also shows that used cars are currently taking an average of just 27 days to sell, which is level with April, but seven days faster than May last year (34).
Walker added: ‘Over the last few months we’ve seen an acceleration in retail price growth, from both a year-on-year and month-on-month perspective.
‘This not only shows the current strength of the used car market, but also how important it is to keep a close eye on live retail prices to drive the most profit out of every sale.
‘With trade values not in line with retail, this further strengthening in retail prices is providing robust margin potential.’
