New analysis from Cazana found used electirc vehicle (EV) prices increased by 1.1% in April, marking the first time this year EVs have led the market for price growth.
The company said rising fuel prices and stronger consumer demand for alternative-fuel vehicles contributed to EVs becoming the fastest-selling fuel type in the UK retail market during the month.
Cazana’s data showed 33% more EVs were sold across March and April compared with the first two months of the year.
Hybrids followed EVs with a 0.9% price rise in April, taking total hybrid price growth to 3% over the past two months. Diesel prices increased by 0.3%, while petrol prices declined marginally by 0.5%.
Across the wider used car retail market, average advertised prices for three-year-old vehicles rose by 0.3%, equivalent to around £70.
One-year-old vehicles recorded the strongest gains, with prices increasing by 0.9%, while five-year-old car values remained broadly stable. Ten-year-old vehicles declined by 1.2%.
Toyota and Volvo with strongest price performance
Stock volumes for three-year-old used vehicles also increased for the third consecutive month, rising by around 2% compared with March.
At the three-year age point, Toyota and Volvo recorded the strongest price performance, with increases of 3.6% and 3.1% respectively.
Premium brands including BMW, Mini and Mercedes-Benz also continued to record price growth.
Body style trends showed estate and saloon cars outperforming the broader market due to lower supply levels, with prices rising 2.3% and 2.1% respectively.
Hatchback prices increased by 1%, while MPVs fell by 2.4% for the second consecutive month.
Derren Martin, automotive expert at Cazana, said: “The used car retail market in April continued in a similar vein to the earlier months this year, with its overall strength.
“Volumes increased, but dealers remained keen to edge prices up where possible, increasing margins slightly.”
A significant increase in used EV demand
Martin said the market was now seeing a significant increase in used EV demand.
He said: “As predicted, we are now seeing a surge in the sale of used EVs, although whether demand will match supply in the long term remains to be seen, with manufacturers focusing more on new car EV sales than used.”
Looking ahead to May, Martin added: “It will be interesting to see whether retailers can continue to edge prices up in May, traditionally a slower month due to Bank Holidays distracting consumers from the forecourts and continued concerns from the war in the Middle East.”
Cazana said the strengthening used EV market was helping stabilise residual values and reducing risk for fleet operators de-fleeting electric vehicles.
Martin added: “April’s data highlights that the early adopter phase of the used EV market is over. For fleet managers, this provides the confidence needed to lean harder into electrification, if they haven’t already, knowing that there is now a hungry and stable secondary market ready to buy those vehicles when they are de-fleeted.”
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