Industry demand for used-hybrid vehicles on the rise, amidst continued uncertainty around EV values and charging infrastructure
Motorway’s Inside Track, a report analysing sold prices from the used-car marketplace, shows hybrid cars selling for 2.85% more in Q2, in line with consumer desire to invest in lower emission vehicles, whilst uncertainty around EVs remains.
London, Wednesday 31st July 2024 – Motorway, the UK’s fastest growing used-car marketplace has today launched Inside Track, providing insight into used-car sold prices from its online marketplace. The data found that overall demand for used-cars remained largely stable in Q2, with average sold prices rising 0.4%.
However, hybrid and EV sale prices experienced contrasting changes, with EV sale prices dropping by -8.08% and hybrid sale prices increasing by 2.85%. This shows that there is industry recognition of the consumer desire for lower emission used-cars, but prices are being impacted by supply changes as well as general uncertainty about fully electric.
The list of top 10 most frequently sold used-cars on Motorway in Q2 is still dominated by petrol and diesel vehicles, with certain models seeing a notable increase in sold prices on the platform. MINI Coopers remain in demand as the most frequently sold car in Q2, with average sold prices rising 3.69% QoQ. Average sold prices of Volkswagen Golf and Ford Fiesta are also on the rise, with these models selling for 3.87% and 4.65% more in Q2, respectively.
Mismatch in demand for used EVs and reality
Consumer research by Motorway shows that 8-in-10 Brits (82%) are willing to pay a premium for a used-EV, with a third (32%) actively considering purchasing.
Whilst used EV sold prices dropping by 8.08% in Q2 starts to go some way to bridging the affordability gap between used ICE and EVs, it’s also a significant indication of EV uncertainty in the industry, amidst confusion around the government’s commitments and lingering concerns about charging infrastructure and battery health. The increased demand for hybrid vehicles – reflected in the 2.85% increase in average sale price – reflects trade and consumer desire for a more certain sustainable motoring option.
Fuel type | Average sale price | Average sale price +/- QoQ |
Petrol | £15,002.00 | +0.52% |
Diesel | £19,200.50 | -0.04% |
Hybrid | £22,150.00 | +2.85% |
Electric | £18,577.00 | -8.08% |
Brits call on the new government to invest in EV infrastructure
Consumer perception of the affordability of used electric vehicles is positive, with 4-in-10 (41%) citing general affordability, including running costs, as a reason why they’re seriously considering purchasing. Additionally, consumers (35%) referenced that the lower prices for used EVs, compared to new, is another reason why electric vehicles are a serious consideration for them. Sustainability (29%) rounded out UK consumers’ top three reasons for considering a used EV, showing this remains high on the public’s agenda despite continued cost-of-living pressures.
However, while consumer demand and sentiment around affordability is heading in a positive direction, factors mirroring the House of Lords Environment and Climate Change Committee’s 2024 inquiry into EV strategy were cited as key concerns about making the switch.
Concerns about battery health (39%) and ‘range anxiety’ (33%) topped the list among consumers, as well as charging speeds (29%) and local areas lacking in sufficient charging infrastructure (18%). One-in-five potential buyers (20%) are also concerned about used EV’s depreciating in value, as well as whether local garages have the skillset to maintain an electric vehicle (17%).
Despite consumers and the industry calling on the government to support the switch to EVs in order to meet sustainability commitments, EVs were unmentioned in the recent King’s Speech. A third (32%) of Brits want to see the new administration invest more money into EV infrastructure like charging points, while grants for buyers (27%) and tax-breaks for manufacturers (20%) that make EVs more affordable were also high on the public’s wishlist.
James Wilson, Chief Operating Officer at Motorway, said: “Motorway’s research reveals a contrast between Brits wanting to invest in more sustainable second-hand vehicles, and the reality of industry sentiment around fully electric vehicles. EVs are selling for less on our platform than in previous quarters, but we’re seeing an increase in demand for hybrid vehicles from dealers.
“Although it’s positive that we’re heading in the right direction affordability-wise, if the UK stands a chance of hitting its sustainability goals, there needs to be much more of a focus on building and maintaining an EV infrastructure that reassures buyers, both trade and consumer. The new government has an integral role to play in supporting the transition to used EVs, and we’d like to see this higher up on their agenda. Our research shows that the intent is there from consumers and they are willing to pay a premium to switch to more sustainable motoring. The missing puzzle piece is for the EV infrastructure in this country to be more supportive of this switch.”