Different trends are becoming apparent for the prices of used purely electric vehicles versus hybrid cars, according to new data collected by Auto Trader.
It found that while hybrid models are tending to hold higher values, the resale price for electric cars is depreciating much more quickly.
It’s always important for dealerships to keep on top of trends in the industry, not just from a sales point of view but also to ensure that they are adequately insured for the vehicles on their premises. Information such as the new pricing data from Auto Trader can help you plan your business and make sure you have the right level of motor trade insurance.
Karolina Edwards-Smajda, Auto Trader’s retailer and consumer products director, said: “Despite the positive outlook for hybrid car depreciation, we are seeing very different trends with electric vehicles, as the latest data shows electric cars depreciating at much higher rates – especially within the first two years – losing value much quicker than hybrid, petrol and diesel cars.”
She said the strength of the hybrid market has persuaded more car manufacturers to launch new “desirable, alternative fuel cars”, a trend she expects to continue.
The research also found that for the first time ever, the average price of a diesel car is now lower than that of a petrol vehicle.
The Auto Trader Retail Price Index, which is carried out on a quarterly basis, found that more customers are demanding diesel vehicles. This is reflected in a 0.23 per cent growth in the diesel car market, while the market share for petrol models has dipped by 0.59 per cent.
Ms Edwards-Smajda said: “The supply of diesel cars has increased to the point where volume numbers are very close to petrol. The supply and demand relationship has caused the drop in diesel values.”