Used BEV prices decline as petrol values increase

Average used values for battery electric vehicles (BEVs) at three years and 60,000 miles dropped by 1.7% on average – equivalent to £350 – in June, according to pricing experts at Cap HPI.

That compares to average petrol values that increased at both the one and three-year age points.

However, Cap HPI reports that used diesels and both types of hybrids, both plug-in and mild, dropped negligibly.

While BEVs remain the worst-performing fuel type regarding value retention, Cap HPI said it was encouraging to note that June’s Live movement down is significantly less compared to the previous three months.

Analysing all the BEVs valued at three years and 60,000 miles, 68% experienced a decrease in value, 25% remained stable, and 7% saw an increase in value.

This is an improvement from the previous month, where 89% of BEVs saw a decrease in value, and only 1% saw an increase.

Overall, Cap HPI says that a strong used car market in June saw average values fall by just 0.1% or £25 at three years and 60,000 miles.

Since 2012, excluding the Covid-affected years, the average movement in June has been a decline of 1.2%, and this month has been the strongest June since 2009.

Derren Martin, director of valuations of Cap HPI, said: “The air of positivity for used car retail that has been present all year has, if anything, increased in June.

“With interest rates stabilising, inflation falling, and many consumers accepting cost-of-living concerns as the new normal, the appetite to purchase has been omnipresent.

“That is not to say that demand has been through the roof, as it was for prolonged periods in 2020 and 2021 when it was pent-up, but it has been consistently ‘okay to good’ for most retailers.

“As we predicted, there has been little-to-no impact from distractions such as Euro 24 football or the build-up to the General Election on 4th July.

“Petrol cars remain the most desired by consumers, although hybrids and plug-in hybrids continue to be popular for consumers not quite ready to take the plunge and buy a BEV.”

Convertibles and coupe cabriolets both increased by just under 1%, while higher-value cars, such as the Mercedes AMG C-Class Cabriolet, increased in value by 5% or about £1,500, helped by low volume.

Martin continued: “As things stand at the time of writing, there is no reason to predict an end to the strong months experienced so far in 2024.

“Volumes remain on the low side, particularly those under four years old, and demand from consumers is steady. History shows that General Elections cause little disruption, similar to large sporting events.

“The average movement in Live in July, since the daily product was introduced in 2012, is a 1.1% drop, excluding 2020 and 2021.”

He explained: “July can often be similar to June, and this year we are not expecting downward moves anywhere near the averages, and we are expecting a similar pattern to June.

“There is the possibility that there could be a slight average increase in values, but if not, a small movement down should occur, reflecting a positive market. Some models within particular fuel types will remain challenging.”