Used electric vehicle winners and losers emerge
Stronger demand for used battery electric vehicles (BEVs) is improving values and the time they take to sell, according to new data from Solera Cap HPI. Used BEVs aged between three and four years are currently selling around six days faster than equivalent petrol models. The improving retail performance is also being reflected in values. Three-year-old EVs recorded a positive movement of 1.2% in May.
Chris Plumb, head of current car valuations at Solera Cap HPI, said: “The EV market has entered a more stable phase than we have seen over the last few years. Consumer confidence is improving as used prices become more accessible, while buyers are becoming increasingly familiar with battery electric vehicles as a practical ownership proposition.
“Recent increases in fuel prices, driven by conflict in the Middle East and wider global uncertainty, are also helping to strengthen the appeal of EVs. When motorists face rising fuel costs, the running-cost benefits of electric vehicles become much more apparent.” However, Plumb says not all used electric cars have the same appeal in the used market, with “clear winners and losers emerging”.
Strongest used EV performers
The strongest performers are largely established, mainstream models with growing consumer recognition.
Vehicles including the MG 5, Polestar 2, Tesla Model 3, Volkswagen ID5 and Mini Cooper Electric all recorded value growth of more than 5% at three years and 60,000 miles during May. The Hyundai Ioniq 5, BMW i4, Volvo C40 and Volkswagen ID3 also continued to strengthen. However, the picture is less positive at the premium end of the market. Models such as the Genesis G80 EV, Lexus RZ, BMW i5, Volkswagen ID7 and Jaguar I-Pace continue to experience value pressure.
Many remain expensive in the used market and attract a narrower buyer audience, creating greater risk for retailers holding stock for extended periods. Plumb explained: “The opportunity for dealers today sits firmly in the volume segment. Well-known EVs priced below £25,000 are attracting strong levels of consumer interest and selling quickly when positioned correctly.
“At the same time, retailers should remain disciplined around premium EV acquisitions. Demand is improving across the market, but supply volumes are also increasing, and that will continue to influence values over the coming months.” Used EV volumes entering the market are around 50% higher than a year ago, driven by the maturation of fleet and salary sacrifice registrations.
BCA reports used values softening
Average used car values averaged £7,280 across in May at BCA, representing a £152 (2%) decline compared to April’s figures. Values were impacted by a shifting mix of stock, with a heavy concentration of part-exchange product stimulated by the rise in new private retail registrations.
Demand remains strongest for prime 3-5-year-old stock and interest in EVs continued to accelerate throughout the month and significantly outperform other fuel types, says BCA.
BCA’s chief operating officer, Stuart Pearson, said: “As we highlighted in April’s report, seasonal pressures typically affect demand across the used car market in the post-Easter period, so it is no surprise to see values soften slightly, particularly with a significant influx of older part-exchange vehicles driven by the strong private retail registration number.
Read more about it here – https://www.fleetnews.co.uk/news/used-ev-market-winners-and-losers?utm_campaign=404216051-FN%20-%20Newsletter%20-%20Daily&utm_medium=email&_hsenc=p2ANqtz-8WXCTCm1JANmvkqWOYcHTA3wtiKL5TbMOpEB065LzMBwNsJVOMiHG2C6g9vjguln_g6k6wmaA-l7Gu7YFtHT30XbyfAg&_hsmi=137810828&utm_content=137810828&utm_source=hs_email
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