June marked another month of contracting prices for used electric vehicles (EVs), with the average retail value (£31,430) falling 19.1% year-on-year, new data suggests from the Auto Trader Retail Price Index.
It makes June the sixth consecutive month of year-on-year decline, with average EV prices falling by around £5,000 since January (£36,179) and nearly £9,500 since their peak in July 2022 (£40,728).
Finance and leasing terms of brand-new electric cars bought three-four years ago have ended, which has, as expected, resulted in a very strong increase in supply over recent months, particularly from fleets.
While consumer demand for second-hand EVs has been robust, up 6% year-on-year in June, it’s been unable to keep pace with the sharp increase in availability – supply was up 174% year-on-year last month.
Auto Trader says it is this imbalance that has caused prices to contract recently, as opposed to any loss in consumer appetite.
However, supply growth levels are softening. June was the lowest level in nine months and down significantly on the 303% increase recorded in January.
Used EV values beginning to stabilise
As such, despite June marking the highest rate of year-on-year price contraction recorded by Auto Trader, there are strong signs of used EV values beginning to stabilise, with June also seeing the lowest level of month-on-month price contraction (-0.9%) since August last year.
The drop in average EV prices is rapidly closing the upfront price gap between many electric models and their ICE counterparts, and in some cases, has already made them cheaper.
Read more: FleetNews
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