Used EV prices show signs of stability and parity with ICE cars reports Aston Barclay
Posted 18 July 2023
- Some used EV models show signs of price parity with ICE cars
- Buyers are less likely to purchase vehicles that require significant refurbishment
- Hybrids were the biggest losers in Q2
- Demand and prices of ex-fleet cars remains strong
Aston Barclay has seen more signs that the used EV sector is settling down in Q2 as prices fell by just 1.4% (£329) to £22,100 at an average age and mileage of 30 months and 22,128 miles.
Tesla’s new car price reduction continues to influence lower prices in the used EV market which is helping fuel demand while remaining the aspirational brand in the sector.
Some EV prices are showing signs of being on par with their ICE equivalent for the very first time which makes choosing between petrol and diesel and an EV more straightforward for consumers.
The biggest loser in Q2 were hybrids that fell by 5.6% (£1,198) to £18,280 despite average age falling to 47 months and 45,786 miles. With EV prices falling more used car buyers are moving straight to electric from petrol or diesel rather than using a hybrid as a steppingstone which has reduced demand.
Another trend influencing demand and prices during Q2 was buyers avoiding purchasing used cars that need significant refurbishment based on rising repair times and ongoing delays with parts supplies.
The fleet sector has benefitted most from this trend as most of the auction stock fall into the NAMA 1 and 2 grading band which is what buyers prefer. Fleet prices fell by just £61 from Q1 to Q2 to £16,643 despite average age rising by one month to 42.2 months and average mileage rising by 2,421 miles to 37,395 miles.
“We have seen used EV prices stabilise in Q2. What is significant is that dealers are reporting that some used EVs and equivalent model ICE cars are reaching price parity which will mean a used EV should appear on more driver shortlists when replacing their next used car,” explained Nick Thompson, Aston Barclay’s director of sales.
“The next challenge for the market is the lack of appetite from buyers to purchase used cars in need of major repairs. This will require vendors to revisit their reserve prices or refurb the used car before it goes under the hammer,” he added.