EV demand pushing up prices
The price of used electric vehicles is taking them out of reach of the average consumer, just at a time when emissions targets mean EVs should be seen as a practical solution.
The average rate of price growth of used EVs has risen 11%, according to the latest findings from the Auto Trader Retail Price Index.
It’s found the average rate of growth has gradually eased across the total market since January 2019. However, the decline has been felt most keenly by second-hand diesels with growth now slowing to just 1.3%. Average diesel sticker-prices have fallen to £14,306; the lowest since August 2017.
Petrol is faring better, albeit marginally. Growth has slowed from 2.4% in March, to just 1.6% last month, the lowest rate since October 2016. The average sticker price of a petrol is £11,200, gaining on last month’s £11,186.
But while internal combustion engines (ICEs) are stumbling, their electric powered counterparts are thriving. With an average sticker price of £21,560 in April, used alternatively fuelled vehicles (AFVs) grew at a rate of 4.7%, up from last month’s 3.7% and, indeed, the highest rate of growth since August 2018. But the star of the show is pure electric; at £23,361, the highest price to date, EVs are growing at a double-digit rate (11%).
The surging prices of low-emission vehicles can be attributed to supply and demand. On Auto Trader, the UK’s largest automotive digital marketplace, AFVs currently account for just one per cent of stock listed, whilst petrol and diesel account for 52% and 47% respectively.
Karolina Edwards-Smajda, Auto Trader’s director of commercial products, said, ‘When it comes to low-emission vehicles, the industry is facing a Catch-22 situation. The growing appetite of AFVs offer the industry a great opportunity for growth, but for mass adoption, the average price needs to be more accessible to more people. However, with so few vehicles in the market, even second-hand cars are being pushed out of financial reach for most consumers.’
