October's healthy used car market powered by EVs

THE used car retail market is in robust health, and the standout story is a dramatic resurgence in demand for used EVs.

According to the latest data from Percayso Vehicle Intelligence retail prices have risen for a second consecutive month as dealers benefit from widening margins

October saw values for 3-year-old cars jump by 1.2% (c. £300), following September’s 0.9% rise. This growth comes as trade values have dropped, slightly widening margins for retailers on the back of continued low stock levels for cars of this age.

While diesel cars performed the best (up by 1.2% or c. £250), used EVs have made a dramatic comeback. After a year of falling prices, EVs posted the largest increase of any fuel type for the second month in a row, surging by an impressive 2.9%, or £600 on average.

Many three-year-old Tesla Model 3s are now sitting well below £20,000, with some dipping under the £15,000 ‘sweet spot,’ which helped make the £10k-£20k price range the fastest-growing bracket in October, says Percayso.

October’s key market insights:

The Nissan Leaf was the best-performing EV, with 3-year-old models increasing in value by 10% (rising from just under £13,000 to over £14,000). The Tesla Model 3 also performed strongly, up 7.8%.
Nissan was the strongest performing manufacturer overall, with values increasing by 2.5%, followed by Hyundai (+2.0%) and Škoda (+1.9%).
Land Rover, the star performer of the previous two months, appears to have peaked, dropping by 0.7% (c. £300) after its recent 10% climb. Audi saw the largest drop, falling by 1.0% (c. £250), while Volvos and Mazdas also dropped in value, by 0.5%.
While SUVs and MPVs both rose by 0.9%, they were outshone by estates (+2.3%) and hatchbacks (+1.2%), for which demand remains strong against relatively low supply.
Car Supermarkets continued to lead the market for the fifth consecutive month, increasing retail prices by 3.1% as many capitalise on the EV opportunity. Independents increased prices by 2.1% whilst main dealers remained level.

Analysing the Percayso data, automotive expert, Derren Martin said: “October has continued in a similar vein to the last 2-3 months, with retailers continuing to push their advertised prices up, on average.”

“Demand for electric vehicles continues its upward trajectory, and this is illustrated in the strong increases in prices. Many models now look fantastic value at the 3-year age point in particular.”

Derren Martin, Automotive Expert Tweet

“Consumers are now more actively considering these, and independents and car supermarkets are stocking them in greater numbers now. This is great news for the whole automotive market, as strong residuals values are dependent on strong current used car values.

“Dealers will be delighted to see some more 3-year-old cars of all fuel types entering the trade market now, with part-exchanges and fleet returns generated by the plate change month.

“The final two months of the year will be fascinating to track whether the recent trend of retail prices increasing continues, or whether normal seasonality comes into play, as consumers focus on saving money for the festive season.”