According to the latest Auto Trader Retail Price Index, the average prices of used electric vehicles (EVs) have experienced a significant decline of £4,500 since January, even as the broader second-hand market remains strong. This data reveals the ongoing struggles faced by EV prices, despite predictions from experts that they would rebound in the coming months.

The analysis shows that as of May 13, used EV prices were down 17.3% compared to the previous year and have plummeted by an astonishing £4,600 since the start of 2023. In comparison, the average prices of used petrol and diesel cars have seen year-on-year increases of 6% and 4.3% respectively, with current average prices at £16,365 and £16,556.

Although the decline in used EV prices has continued, there are some indications of recovery as the rate of contraction has slowed compared to April, which saw a decline of 18.1%. Additionally, the growth of supply has eased from its peak of 303% in January to 211% in May, while demand on Auto Trader has risen from 40% to 45% during the same period.

Richard Walker, Auto Trader's data and insights director, acknowledges the supply-demand imbalance but notes positive signs of stabilization. While there are currently around 15,000 used EVs available for sale on Auto Trader each day, a significant increase from just 5,000 a year ago, the greater availability of affordable options is driving solid consumer demand and promising opportunities for retailers.

addition to the EV market, the overall used car market has experienced growth, with the average price of a used car reaching £17,946—a year-on-year increase of 3.6%. This represents the highest growth rate since November 2022 and marks the third consecutive month of accelerated growth. May has seen an unexpected month-on-month increase of 0.6%, contrary to the typical softening of prices during this time of year.

Analysts attribute these trends to ongoing supply and demand dynamics in the market, with May witnessing a 13% year-on-year rise in visits to the marketplace. Auto Trader's data also reveals that used cars are selling faster, taking an average of 27 days to sell, which is on par with April and seven days faster than May of the previous year (34 days).

Walker emphasizes the importance of closely monitoring live retail prices to maximize profit, as retail prices have been strengthening while trade values have not kept pace. The acceleration in retail price growth indicates the current strength of the used car market and highlights the potential for robust profit margins.

Overall, although used EV prices continue to decline, signs of stabilization and recovery are emerging, with increased consumer demand and a broader range of affordable options. The used car market, in general, has shown positive growth, with rising average prices and faster sales, attributed to ongoing supply and demand dynamics.

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