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Used electric vehicles are suddenly doing something they were not doing earlier this year: leading the United Kingdom’s used car market for price growth.
New analysis from automotive data intelligence provider Cazana found that used EVs topped the market in April as more buyers looked for alternative fuel vehicles, mainly because of rising pump prices for petrol and diesel models.
What is driving used EV price growth in the UK?
Used EV price growth appears to be coming from a mix of stronger consumer demand, higher fuel costs, and a broader shift toward electric and hybrid vehicles.
According to FleetNews, secondhand EVs sold more quickly than any other fuel type in the U.K. retail market in April, with used EV sales in March and April 33% above the level recorded in the first two months of the year. This is a helpful sign that buyers may be growing more comfortable with secondhand electric models.
Why is increased demand for used EVs so important?
A stronger used EV market could make the shift to cleaner transportation more practical for both everyday drivers and large fleet operators.
When used EVs are in greater demand, they hold their value more reliably. This means dealers can price them with greater confidence, and more buyers may be able to access an electric car at a more affordable price point than a new EV. This could help move more drivers away from fuels like gas and diesel.
Plus, for households looking to cut fuel spending, used EVs may offer a way to avoid volatile pump prices while also benefiting from typically lower running and maintenance costs.
Cazana said used EV prices rose 1.1% in April, the strongest performance among fuel types. Hybrids followed with a 0.9% increase, while diesel rose 0.3%. Across the broader market, average advertised prices for three-year-old used cars edged up just 0.3%, meaning EVs outperformed the market.
The data also pointed to wider changes across the industry, including rising prices for one-year-old vehicles and continued shortages of traditional body styles.
“April’s data highlights that the early adopter phase of the used EV market is over,” said Derren Martin, automotive expert at Cazana, according to FleetNews.
What else is changing in the used car market?
The Cazana report suggests the shift is not limited to EVs alone. Hybrids also posted solid gains, which may appeal to drivers who want better fuel economy but are not ready to go fully electric.
Meanwhile, some traditional vehicle formats are becoming harder to find. Estates and saloons (i.e., traditional four-door sedan models in the U.S.) saw price increases of 2.3% and 2.1%, respectively, as lower supply pushed values higher. Hatchbacks rose 1%, while minivans fell 2.4% for the second month in a row.