EVs surge to the front as used car market continues

“April’s data highlights that the early adopter phase of the used EV market is over. For fleet managers, this provides the confidence needed to lean harder into electrification, knowing there is now a hungry and stable secondary market ready to buy those vehicles when they are de-fleeted.”

Derren Martin, Automotive Expert at Cazana Tweet

CAZANA’S latest market analysis has revealed a significant shift in the used car landscape, as electric vehicles (EVs) topped the charts for price growth for the first time this year.

Surging demand for second-hand EVs combined with a scarcity of traditional body styles is driving a fundamental market shift. This is allowing dealers to firm up margins while offering fleet operators more stable residual values (RVs) for their electric assets.

According to the automotive data intelligence provider, growth in April was fueled by rising pump prices and a surge in consumer appetite for alternative-fuel vehicles. Consequently, EVs became the fastest-selling fuel type in the UK retail market. Cazana’s data highlights a pivot in buyer behaviour, with 33% more EVs sold in March and April compared to the first two months of 2024.

Petrol demand weakens as buyers look to more sustainable options

In a landmark month for sustainable transport, EV prices led the market with a 1.1% increase. Hybrids followed closely with a 0.9% rise — marking a total growth of 3% over the last two months — as they continue to serve as the preferred “halfway house” for cautious consumers. Diesel showed a modest 0.3% increase, while petrol recorded the weakest performance, down a negligible 0.5%.

The broader used car retail market remained robust throughout April, with average advertised prices for three-year-old stock increasing marginally by 0.3% (approx. £70). Performance varied across age brackets; one-year-old car prices jumped by 0.9% (c.£240), while five-year-old cars remained stable (down 0.1%), and 10-year-old cars softened, dropping 1.2% (c.£90).

Stock volumes for three-year-old vehicles rose for the third consecutive month, increasing by approximately 2% compared to March.

Toyota and Volvo win in April used car market

Toyota and Volvo emerged as the month’s strongest performers at the three-year age point, seeing price increases of 3.6% and 3.1% respectively. This marks a notable resurgence for Volvo, following a softening of prices last year. Premium brands BMW (+1.2%), MINI (+2%), and Mercedes-Benz (+1.3%) also maintained their strong year-to-date momentum.

In terms of body styles, supply-and-demand dynamics continue to favour traditional, lower-volume formats. Estates and saloons increased by 2.3% and 2.1% respectively, following similar gains in March. Hatchbacks rose by 1%, while MPVs struggled for the second month running, dropping 2.4%.

Surge is April used EV prices

Reflecting on the April data, 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.”

The shift toward EV acceleration is also stabilising fleet operations by tempering depreciation and potentially improving future RVs. This trend reduces lease risk premiums and creates a more positive window for de-fleeting three-year-old stock.

Conversely, a scarcity of used estates and saloons is driving up replacement costs, forcing fleets to opt for SUVs or extended contracts. With internal combustion engines facing a “double squeeze” of high pump prices and stagnating asset values, managers are incentivised to accelerate transitions to electric or hybrid models to protect their total cost of ownership (TCO).

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