The retail used BEV sector in the UK remains the most stable of the 13 major European countries in INDICATA’s monthly Market Watch report.
The report shows used BEV sales taking a 4.8% share of the UK market while zero emission cars accounted for 5.1% of used car stock sitting on dealer forecourts, which shows retail supply and demand are currently well matched.
While this supply figure does not consider BEVs sitting in the UK wholesale market it bodes well for a healthier used EV market moving into 2025 than experienced over the past two years.
Only Denmark comes close to this level of stability with BEVs taking a 38.2% share of sales while boasting a 31.5% share of dealer stock whereas most European countries are faced with a major overstocking of used BEVs.
Meanwhile, UK retail BEV prices rose again between October and November by 0.7% according to INDICATA data, and by 1.4% between August and November.
This is the first real sign of used BEV price stability in 2024.
This price consistency in no way makes up for a 43% reduction in UK BEV retail prices and the subsequent residual value losses experienced since January 2023, but it does provide a glimmer of hope for those underwriting future residual values.
Dean Merritt, INDICATA UK head of sales, said: “Residual value setters who shape attractive leasing rates will play a major part in helping OEMs reach next year’s ZEV mandate target where 28% of new cars must be battery electric.
“While they will not want to be too optimistic with residual values, new BEV discounts are likely to contribute to more affordable rates for all BEVs.
“The ZEV mandate will continue to have a significant influence on the used car market over the coming years and will push more BEVs into the used car market as new sales increase. If the blend of supply and demand continues in its current vein, we can see the used BEV market providing more stability during 2025,” he added.