Dealers should plug into fast-growing used EV market says Cap hpi
- May 10, 2019
- Posted by: John Swift
- Category: Automotive Industry
Dealers should be plugging into the used electric car market and getting the message out that a second-hand one makes much more sense financially than a new one as data shows supply, values and demand all rocketing upwards.
Cap hpi says that the second-hand EV parc has grown by more than a quarter (27%) in the past two years alone and that figure is set to accelerate further as more pour into the new car sector over the next 12 months. However, it says the rate of growth in supply is accelerating and when comparing the first two months of 2019 against the same period in 2018 that figure jumps to 30%.
Average used electric car values on dealers’ forecourts are up 14% over the past 12 months.
Among the franchised sector, sales of first registration EVs the fastest growing part of the new car market with Q1 year-on-year sales up by more than 50% in 2019. March saw them hit 100,000 registrations in a single month for the first time.
Cap says it is clear that the impetus for EVs – new or used – will only be boosted by schemes such as the Ultra-Low Emission Zone which began in London last month and will be copied by other cities, plus the renewed focus on cutting emissions. At the same time, the recharging infrastructure is only getting stronger with more points becoming available.
Used EVs offer much better value for money message
Chris Plumb, electric vehicle expert at cap hpi said: “The past few years have seen a steady growth of the new electric cars being registered in the UK, 2018 saw an increase of 14% over 2017 according to the SMMT. This has resulted in more used EV’s entering the market and satisfying the growing demand from the used consumer. Residual values are improving, with some models, such as the Renault Zoe, actually increasing in value in recent times.”
The Renault Zoe continued to perform strongly due to low volumes in the market. An 8% increase in April means that a one-year-old Zoe is worth almost 50% more than it was at the start of 2018 – a rise of around £5,000.
Chris added: “New electric cars can still be expensive to either buy or run on a finance deal with the used car offering much better value for money. The choice of used EV’s continues to grow, and most people will find a used EV that will suit their travel needs and hit the right price point.”