There is greater agreement when it comes to the current EV stock supply that is available, with 37% agreeing that more electric cars that meet everyday needs are important while 28% point out there are too many expensive, executive EVs in the market.
Annual figures show sales of new electric cars are up nearly 90% compared with 2022, while sales of second-hand models have risen 82%. However, the latest data from AA Cars suggest that interest in EVs may be cooling.
Cox Automotive predicts used car transactions for the entirety of 2023 to be 7,154,047 units, a 4% year-on-year increase, but still below (-3%) the average pre-pandemic yearly figure. It forecasts 1,866,540 transactions in Q3, softening to 1,607,517 in Q4. The Q1 baseline forecast of 1,790,034 achieved an impressive accuracy of 96.8%, closely aligning with the actual figure of 1,847,149, instilling confidence in the full year forecast across different market scenarios.
EVs accounted for 10.6% of used car sales in June compared with 9.2% for diesel for cars under two years of age which marks a swift and marked change in the market which has seen electric cars struggle to sell earlier in 2023.
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).
Despite the encouraging fall in market supply, EVs remain the slowing-selling used power train type. Its 69 days of supply in the market compares with petrol (40 days), diesel (43 days) and hybrid (49 days). This suggests a further fall in prices could be needed to fuel demand, especially on the newer more expensive used EVs.
November’s Startline Used Car Tracker shows 58% are concerned about the expense of EVs compared to petrol and diesel vehicles. Also, 25% of dealers are troubled by their lack of onsite charging facilities, 19% simply say customers aren’t ready to accept EVs and 14% that their sales team is not trained to sell them.
Average used car prices increased in September by 0.4% for the first time in 2022 as buyers returned to the market post their summer holidays. However, used prices remain 3.5% down year to date with the UK the only country in Europe still to report a price fall in 2022.
A limited supply of used EVs is entering the market caused by leasing fleets continuing to extend contracts, rental companies retaining rather than de-fleeting their stock and dealers retaining part exchanges.
Aston Barclay identifies the most desirable used cars each month by using three key metrics: web views prior to sale, number of physical and online bids per sale and the sale price achieved as a percentage of CAP Average
