‘Significant’ price corrections for some used electric vehicles

Used car demand followed seasonal patterns and remained steady during most of December, but there continued to be pressure in the used electric vehicle (EV) market, with some models seeing significant pricing corrections throughout the month, reports BCA.

Overall, used car values averaged £8,265 at BCA in December, down by £212 or 2.5% compared to November. It said that the shift was largely driven by the continuing interest in the budget end of the marketplace and the resulting changing mix in sold product. 

“The budget used car sector remains extremely active as motorists look for the best possible value when buying a replacement vehicle and this continues to impact wider wholesale average values,” said Stuart Pearson, chief operating officer at BCA.

“More used EVs are returning to the market than ever before, and whilst there is definitely some volatility in their pricing, the use of real-time pricing intelligence remains vital to keep stock turning.”

Between Christmas and New Year, BCA staged a special programme of online auctions across four days with more than 6,600 customers logging in to participate.

“The New Year has started on a brighter note for the wholesale market, with strong levels of demand from professional buyers and anecdotal reports of improving retail activity on used vehicles,” continued Pearson. 

“Meanwhile, recent economic reports seem slightly more positive with talk of inflation falling in 2023 and the SMMT reporting the fifth consecutive month of growth in the UK new car market in December. 

“Whilst new cars are becoming more readily available and there is also likely to be further volatility in the EV sector, most dealers have rigorously managed their closing year end stock position and there is every expectation that used car values will remain resilient for the next few months.”