Electric car prices up: Indicata report

Used Battery Electric Vehicle (BEV) Prices Show an Uptick in the UK Market

Great news for electric car enthusiasts and the green energy movement alike – prices for used battery electric vehicles (BEVs) are on the rise in the UK after a period of decline. According to the latest Indicata Market Watch report, used BEV prices increased by 0.6% between the beginning of September and early October. Even more encouraging is the fact that prices rose by 0.1% over the three and a half months from July to mid-October, showcasing a positive trend in the market.

The recent data from Cap HPI further solidifies this positive shift, indicating a 1% increase in used BEV values at the three-year mark in September after a prolonged period of decline. With used BEV prices having plummeted significantly over the past 18 months, this recent upturn is a welcomed development.

Indicata reported earlier in the summer that the average three-year-old used electric car had dropped in value by 43.8% compared to a year and a half prior, raising concerns within the industry. In response to these challenges, the BVRLA initiated its #happyEVafter campaign, urging the Government to intervene and help stabilise BEV values to safeguard leasing companies and fleet operators investing in zero-emission vehicles.

The core focus of the #happyEVafter campaign is centred around boosting confidence, balancing cost of ownership, and expanding accessibility for used BEVs. While the road ahead may present challenges, there is optimism within the industry for a turnaround in the market, as highlighted by Indicata’s latest Market Watch report.

The report notes that the growing demand for BEVs has led to an improvement in their Market Days’ Supply, now standing at 38 days – the best among all powertrains and across the 13 European countries analysed in the report. However, a significant factor to consider is the number of used EVs held in the wholesale market by OEMs and leasing companies, which could impact supply and demand dynamics.

Further positive indicators of used BEV stability can be found in Indicata’s list of the top three fastest-selling used cars in September. The Renault Zoe claimed the top spot, followed by the BMW i3 and Hyundai Ioniq. Notably, these models are positioned at the lower end of the value spectrum, demonstrating dealers’ readiness to stock and sell used BEVs in this segment.

Indicata’s data also reveals a growing presence of younger used BEVs entering the market as manufacturers aim to meet the ZEV mandate target of 22% of new car sales being electric by 2024. While new BEV sales have reached 17.8% by the end of September according to SMMT figures, used BEVs accounted for 5.3% of September sales, increasing to 10.4% for used cars up to four years old.

Dean Merritt, Head of Sales at Indicata UK, expressed optimism regarding the current market dynamics, stating, “All signs point towards a stabilisation in demand and prices for used BEVs, offering relief to leasing companies and OEMs after a sustained period of price declines. The improved balance of supply and demand is reflected in the fastest-selling used cars being electric.”

While the recent trends are promising, only time will tell whether used BEVs have firmly established themselves in the market, resonating with both dealers and consumers alike. The future holds exciting possibilities for the electric vehicle sector, with potential for continued growth and sustainability.