Used EVs powering through summer used car market

AUTOMOTIVE data intelligence provider Percayso Vehicle Intelligence (PVI) highlights continued strength in the used car market despite the holiday season.

Notably, in its latest market report for July, EVs demonstrated impressive stability in retail values, indicating strong consumer confidence in their current pricing.

Overall retail values for three-year-old used cars experienced only a modest drop of 0.6% in July, a testament to sustained demand even during traditionally quieter periods.

Total volumes of three-year-old cars advertised reached their highest point all year, increasing by 2.25% month-on-month, though overall volumes across all ages saw a slight reduction of 0.6%.

According to Percayso, EVs continue to lead the way, recording the smallest drop in retail values, declining by just 0.3% on average at the three-year age point. This suggests that many EVs are now perceived as offering excellent value for money. EVs at the one-year age point actually increased in value on average, by 0.4%.

Commenting on the July market, automotive expert, Derren Martin, said: “Percayso’s latest update suggests July has proved to be another stable month in the used car market, despite the holiday season being in full swing.

“A key point this month is that electric vehicles have been the strongest performing fuel type with regard to retail price changes. The recently announced government grant for new EVs is stoking consumer interest in used EVs, too”

The Nissan Leaf (main picture), Audi Q4 E-Tron and MG ZS EV were the strongest EVs concerning price changes, all increasing from their previous price positions in June.

“As eligibility for the Electric Car Grant for new cars and manufacturers pricing strategies off the back of this become clearer, it will be fascinating to see what, if any, knock-on effect this may cause to used EV prices.”

“Increased consumer interest in used EVs may counter-balance any impact of reductions of new prices on the used car market, leading to negligible impact on used EV prices. They are likely to remain particularly nuanced over the coming months, however, so attention to detail on pricing is vital”

Derren Martin, automotive expert Tweet

Non-electric and brand price trends

Diesel cars saw the largest price drop at 1.75%, despite lower volumes. Hybrids continued their strong performance, with a mere 0.5% decrease, almost mirroring petrol cars.

Reinforcing the demand for more affordable options, cars priced between £5,000 and £10,000, remain popular, seeing a slight price increase, and the most popular mileage bands for 3-year-old cars were between 20,000-30,000 and 30,000-40,000 miles, with almost identical volumes in both categories.

Land Rover demonstrated exceptional price appreciation, with values increasing by an impressive 1.8% on average for three-year-old models. Mini and Nissan also performed well. Conversely, Audi, Kia, and Mercedes-Benz experienced the largest drops, between 1% and 1.5%.

In July, SUVs remained market leaders despite a slight 0.5% price drop, accounting for 53% of advertised vehicles. Small hatchbacks were highly sought after, with prices barely moving, down just 0.2%, due to strong demand and limited availability. Estate cars and MPVs experienced the most significant price reductions, though these were still relatively minor at around 1.5%.

Regarding dealer performance, car supermarkets adjusted prices the least, with a modest 0.4% drop. Independent dealers saw the largest price reductions at 1.5%, while franchise dealers fell in between with a 0.6% decrease.