EVs and hybrids trending up in UK used-car market
Used hybrid and electric vehicles are getting remarketed in ever greater numbers. According to a Used Market Insight by independent UK vehicle auction house Aston Barclay, the number of used hybrids and EVs going through auctions in the UK has doubled in just over a year.
Analysis by Aston Barclay shows ultra-low emission vehicles increase their share of total sold used-vehicle lots in the UK from 1% (Q1 2016) to 2% (Q3 2017).
Pure petrol cars saw their share in the used-vehicle auctions drop from 41% to 38%. Interestingly, the share of diesels increased from 58% to 60%.
Specifically for the UK Fleet sector, the story is largely the same. Here, hybrids and EVs made up 2% of the market share in Q1 2016. By Q3 2017, that share had increased to 3%. Petrol remained static at 21%, while diesel saw a slight reduction (down from 77% to 76%).
The average price of ex-Fleet hybrid and electric cars hit £11,389 in Q3 2017 – a significant rise of £1,702 compared to the beginning of 2016, caused mainly by a more varied stock profile.
Average mileages also rose dramatically in Q3 2017 to 67,615 miles from 61,696 miles in Q1 2016. This is higher than the average diesel and petrol mileage at 58,803 miles and 28,468 miles respectively – and supports the theory they are being used by company motorists as daily workhorses.
“These figures suggest that business users have been driven over recent years to take the tax-efficient option of hybrid/EVs instead of the traditional diesel option”, said Martin Potter (pictured), group operations director at Aston Barclay.
“Although the overall numbers (of hybrids and EVs) coming to auction still remain low, this is a trend we predict will continue across the business sector over the next few years”.
Looking at the general market, the average selling price at Aston Barclay during Q3 remained static, with the market absorbing the increase in volume generated by ex-PCP (Personal Contract Purchase) stock being returned.
The average price in Q3 2017 was £6,947 – just £25 down year on year. Average mileage was higher – 63,311 miles versus 61,168 miles, while average age increased from 70.4 to 72.0 months across the total market.
Looking ahead to Q4 2017, Aston Barclay expects a ‘consistent market’ until Christmas, helped by the four-day window created before new year thanks to Christmas Day and Boxing Day falling on a Monday and Tuesday.
Looking into 2018, Potter added: “We expect January to start strongly with buyers looking to replenish stock after Christmas trading and we expect it to remain buoyant until the traditional Easter change”.
“However, we will see an influx of volumes from the peak 2013-14 new registration period entering the used market during 2018 and this could put pressure on used prices”.