EV residual value warning as used diesels report price rise

Autorola is warning that electric vehicle (EV) prices in used value guides should be used “sparingly” based on its experience of online sales in 2020.

Analysis of the online remarketing company’s sales shows that used hybrid prices fell by £176 (1.4%) in 2020, from £16,778 to £16,602, while the average age rose from 31 to 34 months and average mileage fell from 24,696 miles to 22,632 miles.

Just 2.9% of used cars Autorola sold in 2020 were hybrid, while the numbers of EVs sold online was even smaller.

Fewer than one in 100 (0.8%) of the used cars sold by Autorola in 2020 was electric, highlighting how volumes and sales are still relatively small.  

Average EV used prices increased, however, up by 24.8% (£3,975) to £19,978 at 24 months and 14,328 miles.

Jon Mitchell, Autorola UK’s group sales director, explained: “We are definitely seeing a rise in demand for electric cars in the used market, but prices are still trying to find their level.

“Not surprisingly it will take a while until we start to see higher volumes reaching auction and, in the meantime, the EV prices in the used value guides should be used sparingly as every single car we sell seems to be worth a different amount to individual buyers.”

In 2020, overall prices rose by an average of £1,088 (8.5%) to £13,847 and despite much anticipation about the death of diesel nearly four in ten (37.4%) of used cars Autorola sold online for dealers and fleet vendors had a diesel engine. This price performance was based on an average age and mileage of 35 months and 25,404 miles.

Mitchell continued: “Diesel demand and prices for dealer part exchanges and ex-fleet stock have both been strong during 2020 and there are no signs of it falling which is good news for the trade and consumers alike.”

Meanwhile, used petrol prices rose by an average of 2.9% (£303) from £10,403 in 2019 to £10,706 in 2020, based on an average age and mileage of 32 months and 19,336 miles. Petrol cars accounted for 58.9% of Autorola sales in the year.

The British Vehicle Rental and Leasing Association (BVRLA) suggested, in a report published late last year, that residual values could fall by 10% during the next 12 months, as the economic effects of a recession and high unemployment bite. 

Read more about used electric vehicle (EV) pricing concerns in the January edition of Fleet News, published next week.