The typical value of a used automotive marketed on the market on Auto Merchants has reached a brand new document excessive after automotive retailers began the brand new yr with “actual momentum”, it has been claimed.
Regardless of a surge in provide of recent electrical autos (EV), which induced zero-emission car worth to melt throughout December, common values rose to £18,268 over the last month of 2022 – the very best since Auto Dealer document started in 2011.
The brand new document follows a 2.8% year-on-year and 0.3% month-on-month rise in values.
And Auto Dealer report d that automotive consumers’ Tesla searches surged as shopper consciousness grew of a hunch in values that amounted to over £5,000 since September and £1,400 in a single day following information of new car price cuts at Elon Musk’s EV brand.
Auto Dealer director of knowledge and insights, Richard Walker, mentioned: “After a steady December, our information reveals that the market entered 2023 with some actual momentum behind it.
“Costs are steady, demand is powerful, and the suggestions we’ve been receiving from lots of our retailer companions in the previous couple of weeks helps our cautiously assured outlook for the market this yr.”
Final week AM reported on Cap HPI’s assertion that further ‘significant reductions’ in used EV values after Tesla’s Mannequin 3 misplaced 1 / 4 of its worth in lower than 4 months.
It adopted director of valuations Derren Martin’s appraisal of the market revealed EV values were declining round 4 occasions sooner than their petrol counterparts.
Martin agreed with Auto Dealer’s appraisal that 2023 had began strongly, nonetheless.
In keeping with Auto Dealer visits to its on-line market are up 14% in January – marking a 3rd consecutive month of YoY progress – regardless of a softening of the proportion of used EV advert views.
It mentioned that EVs share of advert views had declined from a share of 6% in June 2022 to 4% in January as provide to the market surged from simply 2% of all used automobiles marketed to over 6% in January.
The present common worth of a second-hand EV throughout the entire retail market (£36,445) is down 0.9% on December consequently – the fifth consecutive months of MoM decline.
In distinction, common costs of used petrol and diesel automobiles are up 0.6% (£16,666) and 0.5% (£16,723) respectively.
‘Nuanced’ EV market
However Auto Dealer mentioned there remained “loads of fashions and derivatives that aren’t solely outperforming different EVs, but in addition their fossil fuelled counterparts”.
Whereas the Tesla Mannequin S and the Audi e-tron recorded a respective MoM decline of three.1% and a pair of.6% between December and January, the Peugeot e-2008 and the Citroen e-C4 rose 11% and seven.7%, it mentioned.
Walker described the used EV market as “extremely nuanced”, including that “a broad-brush not often displays the true image”.
He added: “Retailers want to withstand pondering all EVs are in decline, as the info merely doesn’t assist that.
“These fashions which might be seeing ranges of provide develop at a sooner price than demand are experiencing a value adjustment, however there’s loads of fashions the place demand is as robust, if not stronger than provide, and consequently are promoting rapidly and providing nice revenue potential.
“With the EV market nonetheless maturing, its crucial to observe the reside retail information – to make sure you’re shopping for the fitting automotive to your market on the proper value, promoting them on the proper value, and securing the very best margin within the course of.”