A Positive Start to Autumn
In August, the demand for used electric vehicles (EVs) and hybrids saw a significant uptick, according to Dealer Auction. This wholesale marketplace reported a growing inventory of newer EVs and hybrids, highlighting a marked year-on-year improvement in performance metrics.
Impressive Sales Data
The EV Performance Review revealed a 35% increase in the sale of alternative fuel vehicles on the platform, with a remarkable 75% rise in conversion rates for EVs compared to August 2023. Additionally, the average days to sell the top ten EV and hybrid models improved by 4.1 days year-on-year, while their CAP performance rose by 3.6%, reaching 101.3%.
Younger, Lower-Mileage Vehicles
Cars listed on the platform in August had, on average, nearly 2,000 fewer miles than those listed a year ago and were four months younger. Month-on-month statistics indicate that hybrid vehicles outperformed traditional cars, with conversion rates increasing by 12%, despite a general decline in volumes due to the summer break.
Encouraging Words from Dealer Auction’s Director
Kieran TeeBoon, the Marketplace Director at Dealer Auction, stated, “The year-on-year picture is very encouraging and illustrates the progress that used EV and hybrid vehicles have made among dealers. While the transition to EVs may not be without challenges, they are undeniably becoming a more significant presence in the used car market.”
Rising Selling Prices
Despite August traditionally being a low-volume month for dealers, interest in EVs and hybrids remained strong. Competition for these vehicles increased, contributing to an average selling price 4.1% above the year-to-date average. The average age of sold vehicles remained at 4.1 years, younger than the year-to-date average of 4.8 years, while mileage continued its downward trend, averaging 38,224 miles, which is an 8.4% decrease compared to the year-to-date average.
Toyota Hybrid Models Dominate
Toyota hybrid models dominated the month’s top gross margin rankings, with the Lexus RX SUV once again taking the lead with a potential margin of £4,452. The Prius and RAV4 followed in second and third place with margins of £3,107 and £2,810, respectively. The Kia Niro recorded the best CAP performance at 109.6%, while the Nissan Leaf remained the only EV in the CAP performance top ten.
Conclusions and Recommendations
TeeBoon concluded, “Once again, this month’s analysis shows how important it is to stay close to the data. The market moves fast, and understanding which vehicles offer the greatest potential is essential for success in this sector.”
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Source: Car Dealer
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