Used EV prices fall fuelling increased demand, claims Auto Trader
According to the latest data from Auto Trader’s Retail Price Index, the growth in used car retail values has softened slightly this month, easing from an increase of 3.2% year-on-year (YoY) in June, to 2.8% in July (up to 20th).
On a more granular level, the headline figure masks strong rates of growth across fuel types and age cohorts, especially among older cars. In fact, the current average retail value of a second-hand car aged over 15 years old is £5,805, which is an 8.7% increase on July 2022, and a 2.6% increase on last month, June 2023.
The only age cohort to record a contraction in value this month are those vehicles aged 1-3-years-old, with the average retail price (£27,003) currently down -2.0% on last year. This softening is being driven by the ongoing drop in the value of low-emission vehicles which are dragging back the average values for this age group of cars.
In fact, whilst the retail value of petrol and diesel cars aged 1-3-years-old have both increased 3%YoY, their plug-in-hybrid and electric counterparts have fallen -15% and -24% respectively.
Electric retail values continue to contract, but stabilising as supply surge slows
This disparity between traditionally and alternatively fuelled cars is consistent with the wider retail market. With the rate of supply growth (+174% YoY) continuing to outpace the otherwise robust levels of growth in consumer demand (+6% YoY), electric vehicle retail prices (across all ages) are still contracting on a YoY basis, with current values (£31,622) down -20.7% on last year.
In contrast, the average retail price of a used petrol (£16,519) and diesel (£16,570) car, of any age group, is up 5.2% and 5.1% YoY respectively.
Says Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA):
“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.”
Top 10 used car price growth (all fuel types) | July MtD (up to 20th) 2023 vs July 2022 like-for-like
| Ranks | Make | Model | July 23 MTD Average Asking Price | Price Change (YoY) | Price Change (MoM) |
|
| 1 | Peugeot | Partner Tepee | £10,554 | 21.3% | 5.3% | |
| 2 | Fiat | Panda | £6,774 | 15.7% | 0.2% | |
| 3 | Suzuki | Jimny | £11,096 | 15.0% | 0.0% | |
| 4 | Volkswagen | up! | £9,028 | 13.8% | 0.2% | |
| 5 | Hyundai | i10 | £8,466 | 11.9% | 0.4% | |
| 6 | Renault | Scenic | £6,004 | 11.5% | 0.7% | |
| 7 | Peugeot | 208 | £11,205 | 10.9% | 0.0% | |
| 8 | Volkswagen | Beetle | £8,022 | 10.8% | 1.8% | |
| 9 | Kia | Picanto | £9,410 | 10.7% | 0.0% | |
| 10 | Volkswagen | CC | £8,790 | 10.5% | -0.8% | |
Top 10 used car price contraction (all fuel types) | July MtD (up to 20th) 2023 vs July 2022 like-for-like
| Rank | Make | Model | July MtD 23 Average Asking Price | Price Change (YoY) |
Price Change
(MoM) |
||
| 10 | Smart | forfour | £9,178 | -6.4% | -1.2% | ||
| 9 | Audi | Q8 | £53,654 | -7.1% | -0.9% | ||
| 8 | Land Rover | Defender 90 | £64,254 | -7.4% | 0.4% | ||
| 7 | DS AUTOMOBILES | DS 3 CROSSBACK | £18,141 | -7.5% | -1.4% | ||
| 6 | Volvo | XC40 | £31,688 | -9.8% | -1.0% | ||
| 5 | Hyundai | KONA | £20,247 | -10.1% | -1.6% | ||
| 4 | BMW | 8 Series | £47,075 | -11.9% | -0.7% | ||
| 3 | Hyundai | IONIQ | £17,515 | -12.0% | -1.0% | ||
| 2 | Porsche | Taycan | £93,813 | -20.7% | -2.0% | ||
| 1 | Tesla | Model S | £34,834 | -23.3% | 2.3% | ||
