10:16 am, May 31, 2023
Sales of used EVs slowed this month as stock volumes dropped, with franchised dealers feeling the squeeze.
That’s according to the latest eBay Motors Group Market View, which found that the average number of days in stock for EVs increased year on year by 18 days to 51, making them the slowest sellers by fuel type.
Last May, EVs were the fastest sellers, averaging just 33 days to sell.
EV stock levels on Motors.co.uk were also down by 10 per cent month on month.
That was in stark contrast to petrol vehicles, which rose by two per cent. Diesel, meanwhile, was unchanged and hybrids dipped by one per cent.
The Market View showed a month-on-month drop in inventory levels across the franchised, independent and car supermarket sectors from 54 to 51 units.
However, the six per cent drop meant quicker sales, with cars averaging just 36 days on forecourts versus 39 days in April.
The part-exchange boost to franchised dealer inventories in April proved to be short-lived, though, with stock dropping month on month from 78 to 70 units.
Car supermarkets also stocked fewer vehicles, dropping by three per cent to 271. Independents, at 35 units, stayed consistent with monthly averages since January.
Prices for May remained stable at £18,473 – down just £52 (0.3 per cent), but up 10 per cent year on year.
Lucy Tugby, marketing director of eBay Motors Group, said: ‘May was a frustrating month for many car retailers because buyer demand was there, as witnessed by cars selling quickly, but stock levels remained constrained, falling to their lowest level since October 2022.
‘With stock volumes traditionally declining as we enter the summer, we anticipate this trend to continue over the coming months.’
She added: ‘What is also concerning is the fall in EV stock levels at a time when availability should be improving on the back of growing new vehicle sales.
‘We believe some dealers are reticent about stocking EVs, understandably preferring to wait for the pricing volatility to settle, rather than risk taking a financial hit.
‘As a result, 10 per cent fewer EVs were available to buyers in May compared with April, at a time when the market should be experiencing consistent month-on-month improvements.
‘Franchised dealers, taking in EV part-exchanges and with OEM partner targets to hit, will have felt the squeeze in May.
‘Unfortunately, this is likely to continue until prices become more palatable for wholesale and retail buyers.’
The fastest-selling used car in May was the Vauxhall Corsa, with sub-two-year-old petrol models having mileages under 5,000 averaging just 14 days to sell.
