- Used EVs selling rapidly despite softening used car market.
- Strong demand, 30-day average sell time, eco-friendly appeal.
- Used EVs help counter market softening, older cars gain value.
Used electric vehicles (EVs) are selling rapidly despite a slight softening in the used car market.
According to the latest report from Auto Trader’s Retail Price Index, the average price of a used car has increased by 2.8% compared to last year, but used EVs are bucking the trend.
People have a strong demand for used EVs, and they’re selling faster than ever, taking only 30 days on average to be sold. The appeal of eco-friendly cars is clear as they offer both environmentally-conscious driving and cost savings.
The popularity of used EVs is helping to counter the overall softening in the market. While other used cars are experiencing slower growth, older used cars have seen an impressive 8.7% increase in value. This highlights the trend of buyers shifting towards sustainable options.
What’s causing the change?
Supply constraints are playing a role in driving up the prices of used EVs. Demand for these cars is growing faster than the available stock, with a 19% increase in demand compared to a 7% increase in stock levels. The effects of the 2008 financial crisis have also affected older age groups, as new cars have been slow to enter the market.
The only segment experiencing a decline in value is 1-3-year-old vehicles, mainly due to the drop in value of low-emission vehicles, including plug-in hybrid and electric cars. However, traditional petrol and diesel cars have still managed to increase in value by 3% year-on-year.
We can even expect this trend to continue, as certain new EV models have dramatically dropped in price. This will filter down to cheaper EVs for the used market in time.
As the demand for used EVs continues to rise, dealers and sellers can expect a thriving business in this sector. Consumers’ growing environmental consciousness and desire for cost-effective options point to a promising future for the electric vehicle market and a greener automotive industry.
“The used car market continues to function in good stead; values are rising, supply is improving, and demand is robust. Electric vehicle prices are also stabilising which is positive, the price parity between EVs and ICE has always been one of the significant barriers to adoption for motorists. With used EV prices declining and edging increasingly closer to the price range of consumer budgets, the data is starting to show an uptick in demand, opening doors of opportunity for retailers to take advantage of this market.”
Sue Robinson, Chief Executive, the National Franchised Dealers Association (NFDA)