Price gap between used EVs and petrol cars narrows as drivers given savings

The car retail website AutoTrader has revealed that used car prices continued to grow during June 2023.

During the month, the average price for a used car sold on the website was £17,756, an increase of 3.2 percent compared to June 2022.

Richard Walker, Director for Data and Insight at AutoTrader, explained why used car prices have steadily continued to rise. 

Richard said: “The used car market has enjoyed a strong first half of the year, with the rise in retail values doing little to dampen consumer demand, which has been reflected in the very strong levels of engagement we’ve seen on our marketplace over recent months.

“Although the current health of the economy does add a degree of uncertainty for the months ahead, based on what we’re currently tracking across the market, our outlook for the rest of 2023 remains an optimistic one.”

However, concerns have been raised over the second-hand values of electric cars, with the average retail cost of a used EV at £31,430.

This makes June 2023 the sixth consecutive month that the price of used electric models has fallen, with a year-on-year decrease of 19.1 percent.

Whilst AutoTrader say that electric vehicles still take longer to sell when compared with petrol alternatives, the average number of days the average advert for one spends on their website has dropped from 42 in May 2023 to 38 in June, showing an increase in demand.

However, Richard Walker reassured owners of electric vehicles who are worried about the falling values.

He explained: “The electric market is still an immature one, and what we’re seeing is a natural and expected correction in the wake of a massive influx of stock over recent months.

“It may be some time before the market reaches a complete equilibrium, but we are seeing clear signs of prices stabilising and some very attractive savings for car buyers.”

For used car buyers, AutoTrader noted that the closing price gap between electric cars and petrol counterparts is making them more affordable.

In June 2023 the average price for a three-year-old Tesla Model 3 on the website was only £3,200 more than a similarly aged BMW 3-Series, compared to a £3,600 difference in April.

As a result, electric cars have been some of the most sold models on AutoTrader during the month, with Tesla being the most sought after brand.