Used EV prices have continued to stabilise in October as supply slows of second-hand models entering the market, according to the latest data from Auto Trader.
In its latest Retail Price Index, it revealed that the average retail price of an electric car was £32,203, up by 0.6% so far this month following a static change in September after 12 consecutive months of decline.
This is compared to a 0.5% increase for used cars across the board month-on-month, averaging £17,774, but year-on-year values were still down 0.9%.
Petrol vehicle average retail prices also increased but only by 0.2% month-on-month while diesel values made the biggest leap, up 0.7%.
Auto Trader believes the change in pricing is due to demand now exceeding supply of electric cars on its platform.
So far in October, it has seen EV demand up 78.4% compared to diesel which saw demand drop 1.1% and petrol up just 2%.
This was contrast with supply entering the market, which was up 24.3% so far this month compared to the extreme highs of up 115% in August and up 57% in September.
Although there is softening in supply, there is still high volume entering the market due to the defleeting of around 750,000 electric cars bought in the last three years.
This has had an impact on younger vehicle values in the market and the recent contraction in prices, Auto Trader reported. The decline in the retail price of used cars less than a year old fell in mid-October by 2.9% year-on-year from -2.5% in September, whilst one to three-year-old cars are currently down 6.7%, which was the same rate of decline recorded last month.
Auto Trader’s data and insight director, said: ‘The continued realignment in used electric pricing is the real stand-out so far in October, with another month of improvement after a year of decline.
‘For the moment we’re seeing the stars align for second-hand EVs; greater affordability and rising prices at the pumps is helping to make them a more viable alternative to their ICE counterparts which are still increasing in value.
‘The combination of accelerating demand with softening supply is good news for retailers; although the market remains volatile, for those who follow the data to find and price the right stock for their forecourts, EVs currently represent real profit potential.’