10:24 am, March 23, 2023
Switched-on car buyers are delaying the purchase of a used EV in order to benefit from further price drops, new data has shown.
A survey by eBay Motors Group found that more than four in 10 customers (43 per cent) know about collapsing used EV values.
The firm’s Consumer Insight Panel survey discovered that around 10 per cent of buyers are willing to delay their next purchase by up to three months in order to bag themselves the best deal.
Meanwhile, 15 per cent of the 2,001 respondents said they would wait from four to six months and a further 15 per cent by seven to 12 months.
One of the many reasons suggested for the falling plummeting prices of used EVs has been a lack of demand, but that wasn’t shown by eBay Motors Group’s findings.
The research uncovered a high level of interest among buyers for alternatively fuelled vehicles, with 42 per cent having searched online for an EV and 33 per cent for a plug-in hybrid (PHEV).
It also showed next to no difference in demand between new and used EVs. A quarter (25 per cent) said they had searched for new EVs, compared with 23 per cent for used.
Elsewhere, 17 per cent have searched for a new PHEV, versus 20 per cent for used.
Lucy Tugby, marketing director of eBay Motors Group, said: ‘With used EV prices undergoing a turbulent time, our Consumer Insight Panel research sheds some important light on how this is impacting current buying decisions.
‘Savvy customers are holding back in the hope that used EV prices will continue to drop. This consumer uncertainty means dealers need to nurture inbound leads with even more care than usual and think about their messaging to customers.
‘We expect used EV prices will eventually find their level once falling wholesale values stabilise and are more aligned to consumer expectations and budgets.’
The future of EVs was one of several topics up for debate at our recent Car Dealer Live conference at the British Motor Museum, Gaydon.
Our panel of used car dealers said they were being put off buying EVs due to crashing prices.
However, Tugby says that that a recovery in the market could be just around the corner. She added: ‘During 2022, we saw buyer interest in EVs begin to fall.
‘This indication of recovery, with two in 10 buyers now expecting their next car to be an EV, is likely to be driven by multiple factors, including a growing acceptance and understanding of the cost-of-living crisis, pay review settlements and the expanding range of EV brands and models coming to the market.’
