Used car prices continue to soar with 'huge surge in stock' of electric vehicles

A used car dealership

The average price of a used car is £17,819

Felix Reeves

By Felix Reeves

Published: 23/08/2023

- 10:04

The price of older vehicles has risen with motorists clamouring for petrol and diesel cars

The current average price of a used car is £17,819, an increase of 1.5 per cent compared to last year, although a slight drop month-on-month.

The value of older cars has reached a record high, with drivers potentially able to get a bargain on younger petrol and diesel cars.

Vehicles that are between 10 and 15 years old have seen values rocket with growth of 11 per cent year-on-year, bringing the average value to £6,629.

Auto Trader research shows that demand for the vehicles is stronger than they have been in eight months, with demand outpacing levels of supply growth.

A car being sold

Older vehicles are selling in high quantities


Prices of used internal combustion engine vehicles remain stable, while values of electric cars are falling, although experts are tempering expectations.

The value of “nearly new” models have dipped, but will still set drivers back an average of £36,862, with recently registered EVs selling for £39,371.

Richard Walker, data and insight director at Auto Trader, said values of EVs are easing, but insisted that context was important for motorists.

He said: “The EV market’s still an immature one, and what we’ve seen over recent months is a natural correction following a huge surge in stock.

“With supply beginning to soften and demand increasing with the help of very attractive savings for car buyers, we’re seeing clear signs of prices stabilising.

"It means for retailers who follow the data, and source the right electric stock for their forecourt, there’s some very strong profit potential.”

There has also been rapid growth in the supply of used electric vehicles in recent months, although the explosion of growth is slowing already.

According to the data, there are now only 12,000 second-hand EVs for sale each day on the online vehicle marketplace, down from 18,000 in early March.

Richard Walker added: “The overall retail market is stable, but as our data illustrates, it’s incredibly nuanced, with large differences in supply and demand across segments causing significant variations in pricing.

“With supply of younger cars improving, values of sub-five-year-old cars are largely flat, whilst prices of older, and more supply constrained vehicles, continue to grow.

“Even at this granular level, there are major variances between fuel-types, which highlights just how critical it is for retailers to follow the data, and not the headlines to inform their pricing and sourcing strategies.”

The Peugeot Partner Tepee seven-seater is the vehicle with the highest year-on-year price rise, increasing 17.1 per cent to an average of £10,125.


A used car dealership

The Tesla Model S saw the biggest drop in price over the last year


On the other hand, the Tesla Model S has seen a huge 24.8 per cent drop in price compared to last year, with an average asking price of £34,538.

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