Electric vehicles experienced the steepest price declines in February, with Tesla models making up four of the five biggest fallers, according to MOTORS’ latest Market View analysis.
The all-electric MINI hatchback (3-4 years old) recorded the largest drop, down 5.6% to £14,249. It was followed by the Tesla Model 3 (3-4 years) down 5.4% to £20,859, the Tesla Model Y (2-3 years) down 4.9% to £29,639, and an older Tesla Model 3 (4-5 years) down 4.2% to £19,009. The only petrol vehicle in the top five was the Vauxhall Grandland (under one year old), which fell 4.8% to £21,421.
Falling EV prices have encouraged more dealers to increase Tesla stock, which rose 4% month-on-month and 77% year-on-year. The average price of used Teslas has now dropped 22% since February 2024, including a 5% month-on-month decline.
“Our Market View data shows that ongoing price reductions have encouraged more dealers to add Teslas to their stock mix. With Tesla Model 3 prices averaging £20,300, these vehicles are becoming more affordable for consumers,” said Lucy Tugby, marketing director at MOTORS. “We will closely watch demand metrics as Tesla faces off against an increasing number of EV options from both emergent and legacy brands.”
Overall, average dealer stock volumes in February fell 8% month-on-month, from 53 to 49 units, aligning with the 50-unit average recorded last year. Car supermarkets saw a 12% drop to 177 units, while franchised dealers decreased 14% to 52 units. Independent dealer stock remained stable at 37 units.
Advertised prices also declined, down 1.2% (£222) to £17,685 after reaching a 14-month high of £17,907 in January. However, prices remain 3.7% (£632) higher year-on-year. The biggest price drop by fuel type was for electric vehicles, which fell 2% to £25,177, representing a 13% year-on-year decline. Diesel prices dropped 1.3% to £15,012, hybrids fell 1% to £25,072, and petrol declined 0.9% to £16,833.
Consumer demand remained strong, with the average days to sell improving from 36 to 34.5. Franchised dealers recorded the fastest sales at 24 days.
“February saw dealers trading through the inventories they had built in January, with buyers benefiting from some competitive prices, as witnessed by faster sales,” added Tugby. “These dynamics left many dealers well placed for the March plate-change where the influx of trade-ins and part exchanges from the debut of the 25-plate will carry momentum into the second quarter.”
