A shortage of used electric vehicles (EVs) could push prices so high that a new vehicle makes more financial sense to buyers, warns Indicata.
Data from its latest market watch report shows battery-powered cars were the fastest-selling models in July, but supply is running out.
Very few used EVs are entering the market, because leasing fleets continue to extend contracts, rental companies are retaining rather than de-fleeting their stock and dealers are retaining part exchanges.
Jon Mitchell Indicata UK’s group sales director, said: “Used EVs have been in high demand during the summer months which is likely to leave the market with a supply shortage. The pent-up demand will push prices up even further.
“The danger is that second hand EVs will begin to compete with the growing number of cheaper new EVs coming into the market. That will leave retail buyers with a decision on whether to buy a new EV or used EV.”
UK used car sales shrank by nearly 20% in Q2, despite a 57.1% increase in used electric vehicle sales over the same period.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that there were 407,820 fewer transactions to a total of 1,759,684 cars changing hands.
However, the SMMT has clarified that the scale of the decline was artificially inflated by comparison with 2021 when the easing of Covid restrictions saw the busiest second quarter since records began. By comparison, Q2 2022 was -13.5% behind pre-pandemic 2019.
The ongoing shortage of semiconductors continued to impact new car market supply, with an inevitable knock-on effect on used transactions.
Indicata’s report confirms that levels of used car stock were 3.0% down between July 1 and August 1, which contributed to sales falling by 10% in the first seven months of 2022 compared with 2021. Sales were also down 6.4% on the same period in 2019 which was the last pre-Covid year.
Vauxhall’s zero-emissions Corsa-e hatchback emerged as the most desirable’ car at Aston Barclay auctions as EVs and premium cars attracted the most attention from buyers, in July.
The electric vehicle (EV) version of the UK’s best-selling car year-to-date topped a top 10 ranking of cars compiled using the remarketing company’s web views prior to sale, number of physical and online bids and the sale price achieved as a percentage of CAP Average KPIs.