Tactical EV registrations by manufacturers could impact used prices and increase demand, according to INDICATA UK’s latest insights report.
“The used market continues to show more of an appetite for used EVs and hybrids, even if it is for the lower priced models. We are starting to see more tactical-based registrations from manufacturers for new EVs which could undermine used prices and bring them down even further in the next few months. This could drive further sales both in the wholesale and consumer market,” said Jon Mitchell, INDICATA UK’s group sales director.
The top three fastest-selling used cars in the UK were all EVs and hybrids for the very first time in October and November with the Toyota Prius topping the table of the UK’s fastest-selling used cars under four years of age closely followed by the Tesla Model Y and Renault Zoe.
The report shows used BEVs now have a Market Days’ Supply (MDS) of 52 days which is behind petrol cars at 46 days and hybrids at 53 days. Market Days’ Supply is derived from dividing the currently available supply of inventory by the average daily retail sales rate over the past 45 days. The UK continues to have the lowest EV MDS in Europe, well ahead of the European average of 85 days.
This increase in demand for EVs has been helped by the 39.7% reduction in prices since the 1 of January 2023 as well as an increased interest from dealers who are beginning to stock sub-£15,000 models on their forecourt in response to growing consumer demand.
Average used prices tend to ease back towards the end of the year but they more than doubled from October into early November to 2.8%, which leaves prices 14% lower than in January 2022, the highest price fall in that period of any country in Europe.
BEVs accounted for just 6.1% of October’s UK sales. Petrol remains the most popular used fuel type accounting for 49.3% of sales above four years of age while diesel market share has fallen to a record low of 15.5% and hybrids share has risen to 34.8%.