Used prices see strong performance as EVs take a hit

Price ranges and demand from customers held sturdy in the very first few months of the yr, with the current average value of a utilised car or truck at £18,268.

This is the maximum price the Auto Trader’s Retail Cost Index has recorded due to the fact its launch in January 2011.

It marks a 2.8% calendar year-on-12 months (YoY) enhance on a like-for-like basis, and even though the fee of expansion is down drastically from a peak of 32% YoY recorded in April 2022, this recent fee is on leading of the huge 31.3% YoY enhance seen in January 2022.

It also marks a thirty day period-on-month (Mother) raise of .3%, the initially beneficial Mother development due to the fact October. Car Trader described that latest advancement is also ahead of common pre-pandemic designs.

Selling prices, Vehicle Trader stated, have remained secure due to the ongoing desire and supply dynamics in the industry. Even though desire has softened against earlier highs, in general levels continue to be strong, which is reflected in the level of shopper engagement on Vehicle Trader. Visits to the marketplace are up 14% on January 2022 – the third thirty day period of consecutive YoY progress. Coupled with continued constraints in supply, this sturdy desire is contributing to the balance in applied automobile values and is most likely to do so for some time to come.

Vehicle Trader’s director of information and insights, Richard Walker, explained: “After a secure December, our data reveals that the current market entered 2023 with some serious momentum guiding it. Charges are secure, need is robust, and the responses we’ve been receiving from lots of of our retailer partners in the past couple months supports our cautiously assured outlook for the market this calendar year.”

The exception to this progress is electric vehicles (EVs), which at a significant-amount have been impacted by contrasting industry dynamics: the price of growth in provide has accelerated past the expansion in demand from customers.

As energy charges started to surge, and the cost of petrol and diesel returns nearer to ‘normal’ amounts, the proportion of utilised EV advert sights on Auto Trader has softened, easing from a share of 6% of all made use of auto advert sights in June 2022, to 4% in January. More than the identical interval, utilised EV offer in the current market has rocketed, surging from just 2% of all utilized autos advertised on Auto Trader in June, to above 6% in January.

As a final result of these dynamics, used EV retail price ranges have started to drop. In truth, the latest regular worth of a second-hand EV throughout the complete retail sector (£36,445) is down -.8% YoY, and -.9% on December, which marks five consecutive months of Mom decrease.

Walker additional: “We have the broadest one perspective of EVs, and as our knowledge highlights, the market place is exceptionally nuanced, and so a wide-brush hardly ever demonstrates the accurate photograph. Retailers require to resist pondering all EV’s are in decrease, as the knowledge basically does not assist that. These versions that are looking at degrees of source develop at a quicker charge than demand from customers are dealing with a rate adjustment, but there is plenty of versions where by need is as sturdy, if not more robust than provide, and as a final result are promoting immediately and offering excellent gain prospective. With the EV market place nonetheless maturing, its critical to comply with the live retail knowledge – to be certain you are obtaining the ideal vehicle for your market at the correct price, offering them at the proper price tag, and securing the very best achievable margin in the course of action.”