Consumers are shying away from expensive used electric vehicles (EV) amid escalating cost-of-living pressures, according to used car stock management and marketing specialist Indicata.
Indicata UK’s group sales director Jon Mitchell said that the used car sector remained in a strong position during September, with average prices increasing for the first time in 2022.
It saw value rise by 0.4% as buyers returned to the market post their summer holidays, leaving values down 3.5% year-to-date.
But, despite the apparent strength of the market, Indicata’s data showed that EVs had moved from being the fastest-selling fuel type in August to the slowest-selling in September as the market turned to buying cheaper used petrol and diesel cars.
Hybrid sales were up 6%, with stock turn on par with diesel and petrol vehicles, meanwhile.
“Our September report shows just how quickly consumer demand can change. Used car buyers couldn’t justify the price premium of used EVs in September and it will be interesting to see if this trend continues as the cost-of-living rises,” said Mitchell.
“The used market remains in a strong position where demand exceeds supply and prices have risen again for the first time in nine months. This looks set to continue until if and when new car production levels start to rise again.”
Earlier today AM reported that Cox Automotive had urged a cautious approach from used car traders entering a winter set to be impacted by faltering consumer confidence.
The trend could raise the appeal of affordable diesel and petrol cars.
Last week AM reported that high demand for petrol and diesel vehicles was continuing to drive the strength of the used car market following a mid-month used car sector interview with Cap HPI director of valuations Derren Martin.
Asked whether supply issues have ensured petrol and diesel cars remain high on car buyers shopping lists, Martin said: “Of course there is still very strong demand for those cars in the used market.
“As well as the supply issues impacting new cars, electric vehicles (EV) remain very expensive. MG are one of few brands that are offering a value-driven option right now.”
Auto Trader commercial director Ian Plummer has previously highlighted the issue of affordability among the push to drive widespread EV adoption, suggesting the high price of zero-emissions vehicles risked rendering them the “preserve of the rich”.
The theme was further discussed in an AM News Show episode with Auto Trader’s Marc Palmer and Cap HPI’s Dylan Setterfield.