Stronger demand for used EVs is improving value performance and leading to faster retail sales, creating opportunities for retailers prepared to be selective about what they buy, according to Solera cap hpi.
Battery electric vehicles show increasing signs of stability and are among the fastest-selling fuel types when priced correctly.
Chris Plumb, head of current car valuations at Solera cap hpi, said: “The EV market has entered a more stable phase than we have seen over the last few years. Consumer confidence is improving as used prices become more accessible, while buyers are becoming increasingly familiar with battery electric vehicles as a practical ownership proposition.
“Recent increases in fuel prices, driven by conflict in the Middle East and wider global uncertainty, are also helping to strengthen the appeal of EVs. When motorists face rising fuel costs, the running-cost benefits of electric vehicles become much more apparent.
“At the same time, dealers should recognise that EVs are no longer one homogeneous market. There are clear winners and losers emerging, and understanding those differences will be critical when making stocking decisions.”
Used EVs aged between three and four years are selling around six days faster than equivalent petrol models. Many models are now available below the £20,000 mark.
In terms of value, three-year-old EVs recorded a positive movement of 1.2% in May.
The strongest performers are largely established, mainstream models with growing consumer recognition. Vehicles such as the MG 5, Polestar 2, Tesla Model 3, Volkswagen ID.5 and MINI Cooper Electric represent lower-risk stock.
They benefit from improving affordability, established reputations and healthy levels of consumer demand.
The picture is less positive for premium models such as the Genesis G80 EV, Lexus RZ, BMW i5, Volkswagen ID.7 and Jaguar I-Pace which continue to experience value pressure.
Expensive models in the used market attract a narrower buyer audience, creating greater risk for retailers holding stock for extended periods.
Used EV volumes are around 50% higher than a year ago, driven by the maturation of fleet and salary sacrifice registrations.
