Used EV prices rise for first time in over a year, reports Aston Barclay

Used electric vehicle prices at remarketing company Aston Barclay have risen for the first time in six quarters as new car buyers turn to the used market for sub-£25,000 EVs.

Latest figures show in Q4 values increased by 6.4% (£1,309) to £21,707 as demand from buyers looking for cheaper EVs increased as they cannot find suitable cars in the new market.

Nick Thompson, chief customer officer Nick Thompson, said “Many leasing companies are seeing a growing number of used EVs coming back from fleet customers.

“The restricted number of new budget EVs on sale is helping create demand for used cars which will build confidence among dealers looking to stock EVs on their forecourts, many for the first time.

“It will also be interesting to see how hybrids fare in a market which is predominantly focused on EVs, while diesel demand carries on unaffected by the evolution of the used market.”

Diesel prices fell 5.9% from Q3 to £7,226 as mileages reached record levels of 87,902, while petrol car prices fell 13.4% in Q4 to £7,097, with average age mirroring that of diesel at 100 months.

The price gap between used diesels and petrols is now closer than Aston Barclay has previously experienced in the report.

Thompson added: “There is just a £129 difference between a 100-month-old petrol and diesel used car, albeit your average used diesel will have covered 30,000 more miles.

“Overall prices in Q4 saw a major realignment caused by used value guides moving as well as a fall in wholesale demand as dealers managed regular price falls.

“The market has settled down again in Q1 2024, but there could be further price realignment as used cars return more closely back to where they were prior to the 2020 Covid pandemic.”

Earlier this month, Cox Automotive said it believes the used EV market is poised for continued volatility as volumes rise, retailers gain confidence, stocking dynamics evolve, and price entry points decrease.

"Volumes of used EVs are growing fast, but consumer demand remains damagingly low," said Cox Automotive's insight director, Philip Nothard.

"The used market for them is yet to find its feet - all of which is fuelling the instability of values.

“These negatives will surely be diluted as the sector continues to evolve, as prices lower, range and technology improves, and pricing becomes more attractive thanks to competition from new entrants."