While the retail value of used petrol and diesel cars aged 1-3-years-old have both increased 3% year-on-year, their plug-in-hybrid and electric counterparts have fallen by 15% and 24%, respectively.

The latest data from Auto Trader’s Retail Price Index shows that the disparity between traditionally and alternatively fuelled cars is consistent with the wider retail market.

With the rate of supply growth (up 174% year-on-year) continuing to outpace the otherwise robust levels of growth in consumer demand (up 6% year-on-year), electric vehicle (EV) used prices (across all ages) are still contracting on a year-on-year basis, with current values (£31,622) down 20.7% on last year.

In contrast, the average retail price of a used petrol (£16,519) and diesel (£16,570) car, of any age group, is up 5.2% and 5.1% year-on-year, respectively.

There are clear indications however, that the market is stabilising, with this month recording the lowest level of month-on-month contraction since August 2022.

At a 0.1% fall this month, it’s a marked improvement on the 0.9% month-on-month decline recorded in June, 1.5% fall in May, and the 1.6% reduction seen in April. This has been helped by slowing levels of supply into the market, as retailers sell through available cars.

In terms of the speed in which they are sold, EVs have gone from being the fastest to leave retailers’ forecourts (up until late summer of last year), to being substantially slower than any other fuel-type, according to Auto Trader’s Retail Price Index.  

However, due to these improving supply and demand dynamics, as well as finding a price point that is attracting sufficient numbers of car buyers to meet the increased levels of supply, it says that EVs are now leaving forecourts much faster.

In fact, the current speed of sale is on par with petrol cars, at just 30 days, making them the joint fastest selling fuel type, and the fastest speed of sale for EVs in nine months.  

Auto Trader’s director of data and insight, Richard Walker, said: “Average retail prices have been increasing for 40 consecutive months, but since the start of the year we’ve seen a steady acceleration in retail price growth.

“Although this has slowed slightly, it’s not an indication of a market in reverse, and anyone anticipating a drop in retail prices anytime soon will be sorely disappointed.

“Despite the economic headwinds, demand remains buoyant, which combined with the ongoing constraints on new and second-hand car supply, will keep retail values stable.”

Indicata reports younger used EVs sell faster than diesels

Separate used car sales data from Indicata shows that used EV sales are outselling used diesels at less than two years old.

EVs accounted for 10.6% of used car sales in June compared with 9.2% for diesel for cars under two years of age, which marks a swift and marked change in the market which has seen electric cars struggle to sell earlier in 2023.

However, according to Indicata’s Market Watch data, things change in the less than four-year old category where used battery electric vehicles (BEVs) accounted for just 6.2% of sales, with petrol leading the way at 53.8% and diesels falling to 18.2%.

“Talking to vendors and buyers it seems that there is greater choice of used EV now in the market at less than 24 months old which is opening up zero emission motoring to more drivers,” explained Jon Mitchell, Indicata’s UK’s group sales director.

“Significantly reduced prices led by Tesla also continue to play a big part as does the massive investment made by car makers in marketing their electric vehicles.

“It has been a perfect storm in June for EVs, and it will be interesting to see if these demand trends continue for the rest of the year,” he added.

Its data suggests that EV prices fell by another 1.5% from June to early July which has helped bring them more into line with ICE cars.

Indicata’s fastest-selling table also shows how EV demand is growing with the Tesla Model 3 and Mercedes EQA topping the list.

Meanwhile, just as production of the Ford Fiesta has stopped after 47 years, the used car continues to be one of the UK’s favourites.

It topped June’s Indicata’s UK’s top-selling table, closely followed by the VW Golf and Vauxhall Corsa.

The car has been one of the UK’s top selling used cars for decades and news of its demise may have injected new interest in the Fiesta, says Mitchell.

“For much of the Fiesta’s 47-years it has been of the UK’s best-selling used cars, and the news of Ford seizing production seems to have injected new life into the car with buyers,” he added.