Used electric vehicles drive forecourt stability in July as prices rise for fourth consecutive month
Used Electric Vehicles (EVs) are propping up overall market values and dominating forecourt speed of sale, according to the latest retail insight from data intelligence provider Cazana.
According to Cazana, the used car retail market sustained its summer of stability during July, with 3-year-old vehicle values posting no average movement overall. The underlying data highlights a major shift by fuel type – EVs posted an average price increase of 1.6% at the 3-year mark, marking four consecutive months of value growth of almost 7% or approximately £1,500 per vehicle.
By contrast, petrol and diesel values edged down by 0.1%, while hybrids fell by 0.3%. Strong EV performance is effectively preventing broader average drops.
Electric models also took top spots for speed of sale, with the likes of the Peugeot 208 Electric, Mercedes-Benz EQB, VW ID.4, and Tesla Model Y all averaging 14 days to sale.
Across vehicle segments, hatchbacks proved to be the standout performer for the second month running, rising roughly 1% in July. Estates and saloons dipped by around 1%, while SUVs remained flat (-0.2%) and MPVs slipped by 1.5% (-2.5% over two months), and convertibles fell 2% as late-summer seasonality took effect.
Renault, Ford, and Kia posted the strongest gains, each rising by around 1% at the 3-year point. Conversely, Land Rover (-1%) and BMW (-0.6%) saw a slight softening.
One-year-old cars rose slightly (+0.2%), 5-year-old cars increased by 0.4% (about £50), and 10-year-old cars dipped by 0.5% (around £40).
Car supermarkets adopted the most bullish pricing strategies (+1.5%), followed by franchised main dealers (+0.5%) . Independent dealers were the only group lowering advertised values (-1.5%).
Derren Martin, automotive expert at Cazana: “Once again, the main story is Electric Vehicles, which continue to increase in price and sell quickly. With petrol and diesel prices at the pump remaining high as events in the Middle East remain volatile, more and more dealers and consumers are taking the plunge for EVs.
“The used car retail market in July remained stable for the second month in a row, after seeing prices increasing before June. This should certainly be seen as a positive for the time of year, with multiple distractions for the consumer, including school holidays, hot weather, and the World Cup. With trade values dropping slightly, margins are being maintained overall.
“Hatchbacks once again hit the sweet spot over the last month, maintaining their position as a solid choice for dealers to fill their forecourts with.
“Looking at the next few weeks, it will be interesting to see if demand drops as the school holidays continue. With volumes on forecourts increasing, it doesn’t seem likely that prices will rise overall, but they should remain relatively stable.”