- Used EV prices likely to settle down in Q1 2023
- Some vendors expect to reach BEV/ICE used car parity as early as 2024
- Contract hire companies report up to 40% of fleet are on extended contracts due to new car delays
Used EVs fell in price by nearly £5,000 during Q4 as the rising cost of living cooled consumer interest in switching to a zero-emissions car according to Aston Barclay.
EV prices fell by -15.5% (£4,866) from £31,349 in Q3 to £26,483 in Q4 as consumers moved their focus towards used petrol and hybrids.
At the end of December 2023, a used EV worked out three times more expensive than the price of a petrol at auction which is why the retail markets have begun to focus on other fuel types.
While prices may have cooled, the volume mix of EV continues to grow as companies lead the move from ICE cars to greener alternatives.
Used petrol prices rose in Q4 by 0.4% (£38) to £7,922, while hybrid prices remained consistent at £19,694 as these two fuel types saw the strongest demand at auction.
Ex-fleet stock shortages helped inflate used prices to a record high during Q4 of £16,206, a rise of 2.5% £404) over Q3. While average age in this sector remained at 41 months for the third successive quarter, average mileage rose again to 34,558 miles. Ex-fleet stock will continue to get older as contract hire fleets report up to 40% of their fleet are on extended contracts as they wait for replacement new cars.
The biggest price rise in Q4 was experienced by dealer part exchanges between 55-75 months which increased by 6.8% (£720) to £11,095. This was helped by a fall in average age and mileage to 65 months and 56,981 miles as dealers who previously bought ex-fleet stock opted for young dealer part exchanges for retailing at below £15,000.
The disruption to public transport continues to breathe life into the Budget sector of the market with prices rising for the seventh consecutive quarter to £2,162, despite the average age rising from 164 to 167 months. Drivers are boycotting public transport in favour of a low-cost runabout to get to and from work which is keeping used prices at record levels.
“Used EV prices were unlikely to stay at record highs forever and it took the rising cost of living to contribute to a major market correction. An identical Honda HRV petrol and EV being sold in the same auction for £19k and £29k respectively shows the pressure the market has been under,” explained Mark Hankey, Aston Barclay’s chief revenue officer.
“A £10k difference in the price of the same car with different fuel types has seen consumers move towards petrol and hybrids. However, we are on a one-way road towards EVs with new car take up continuing to grow. Some vendors expect to reach BEV/ICE used car parity in 2024 and as EV volumes continue to rise, prices should stabilise,” he added.
A link to the full report can be found at https://www2.astonbarclay.net/insight-report-q4-22