In the UK, the average retail value of a used electric vehicle (EV) has increased 0.8% so far in September on a month-on-month (MoM) and like-for-like basis.
With a current average price of £32,463 it marks the first MoM growth since August last year, according to the Auto Trader Retail Price Index, Year on year values are still down -22.6% YoY in August to -21.4% so far this month.
In terms of traditionally fuelled cars, petrol values have also grown slightly this month, increasing 0.1% MoM, whilst diesel prices are down -0.7%. On an annual basis however, both petrol and diesel prices have recorded growth, increasing 3.4% and 2.4% YoY respectively.
The increase in used EV prices is being fuelled by improving market dynamics, with levels of consumer demand outpacing supply levels on Auto Trader for the first time since July 2022.
Richard Walker, Auto Trader data and insight director, said: “Although it’s still early days, it’s positive to see that after more than a year of contraction, the market is beginning to see green shoots emerge in used EV pricing.
“With the continued ‘de-fleeting’ of circa 750,000 electric vehicles sold over the last three years it’ll be some time before the market reaches maturity, but with clear signs of prices beginning to stabilise, the industry should have more confidence in the potential profitability of second-hand electric cars.”
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA) said:
“Dealers are encouraged by the fact used EV prices starting to rise again, after a year of softening from over supply, now driven by growing consumer demand and popularity amongst new and used products. As motorists are beginning to recognise the benefits to owning an EV, such as their reduced environmental impact and reduced operating costs, demand is starting to rise.”
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