Used electric vehicles (EVs) have topped Cazana’s charts for price growth for the first time this year.
Growth was driven by rising fuel prices and consumer appetite for alternatively-fuelled vehicles (AFVs). EVs were the fastest-selling fuel type in the UK retail market in April.
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.
“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.
“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’s data highlights a significant shift in buyer behaviour, with 33% more EVs sold in March and April than in the first two months of the year.
EV prices led the market with a 1.1% increase. Hybrids followed with a 0.9% rise, marking a total growth of 3% over the last two months as they continue to serve as a stepping stone for cautious consumers.
Diesel showed a slight increase of 0.3%, and petrol recorded the weakest performance, down 0.5%.
The shift toward EV acceleration is also stabilising fleet operations by tempering depreciation and potentially improving future residual values.
This reduces lease risk premiums and creates a more positive window for de-fleeting three-year-old stock.
With internal combustion engines facing a “double squeeze” of high fuel prices and stagnating asset values, managers are incentivised to accelerate transitions to electric or hybrid models to protect their total cost of ownership.
