Demand for used EVs surged in May as prices dropped below their petrol and diesel counterparts.
Latest figures from Auto Trader show demand for used petrol and diesel cars fell -0.5% YoY and -9.7% respectively in May.
In contrast, demand for alternatively fuelled vehicles surged, with hybrids and plug-in hybrids increasing 16% and 27%, respectively.
The biggest growth in consumer interest, however, continues to be seen in used electric cars, which in May increased 31% YoY fuelled by the ongoing softening in prices.
The average cost of a used EV (£24,370) fell -7.4% YoY, whilst petrol and diesel car prices grew 0.5% YoY and 2%.
According to Auto Trader this disparity is more pronounced with 3-5-year-old cars, with electric models at this age dropping -11.6%, versus a 3.1% and 2.4% growth for used petrol and diesel cars.
As a result, a 3-5-year-old electric car is currently cheaper (£18,266), than a petrol of the same age (£18,731), it said.
According to Auto Trader’s Retail Price Index the average price of a used car was £16,825, which marked the second consecutive month prices were flat on a year-on-year (YoY) and like-for-like basis, following more than a year and half of price contractions.
Marc Palmer, head of strategy and insights, at Auto Trader, said: “Although a slight softening on the strong first quarter of the year, we’ve seen a flatter but nonetheless robust used car market so far in Q2. Retail prices are stable, demand is healthy, and cars are selling at pace.”
