BCA is reporting an improving used marketplace for Electric Vehicles, with May 2023 recording the strongest month’s performance for EVs since the peak recorded last October.
Across the board, headline EV values at BCA were more resilient than some more traditional fuel types during the month.
BCA Valuations data suggests that sellers and buyers are currently more aligned on price expectations than at any point in the last six months, with first time conversion rates and sold volumes for EVs rising in May. Underlining that EVs are becoming increasingly affordable following the price realignment late in 2022, average values of £23,047 in May 2023 are significantly down on values seen at the peak of the market (calculated across a similar basket of product).
Professional buyers are now focussing more attention on the higher specification premium EV sector now that values have steadied, with early indications that values on some models are beginning to rise.
Stuart Pearson, BCA Chief Operating Officer, said: “We have seen a very positive performance across the used car market at BCA in recent weeks, with the EV sector perhaps being the surprise package of 2023 so far.”
He added “The very negative outlook from a number of market commenters had certainly affected confidence across the EV marketplace, so it is encouraging to see values rally in recent weeks. The year-on-year valuation chart certainly shows that affordability has increased significantly and this will be reflected in demand at wholesale levels. There is also greater stability in pricing across more models each week with values starting to be much less prone to spikes and falls.”
He added “We are starting to see values rise for some models and the pool of EV buyers at BCA is growing each month, reflecting the interest reported by the SMMT which revealed electric vehicles represented the second biggest sector by fuel type – after petrol – for new vehicle sales in May.”
Source: BCA Valuations
Pearson said: “The motor trade has a reputation for rewarding those that move the fastest when an opportunity arises, and it is apparent that many professional buyers are now seeing the opportunity that the EV sector is presenting.”
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