Values for ex-fleet cars at Aston Barclay reached a new record high in Q4 2022 but used EVs suffered their largest quarterly price drop since 2021.

Mark Hankey, Aston Barclay’s chief revenue officer

The auction specialist’s new report reveals that used EVs fell in price by nearly £5,000 during Q4 as the rising cost of living cooled consumer interest in switching to a zero-emission car.

EV prices fell by 15.5% (£4,866) from £31,349 in Q3 to £26,483, as consumers moved their focus towards used petrol and hybrids.

At the end of December 2022, a used EV worked out three times more expensive than the price of a petrol at auction – explaining why the retail markets have begun to focus on other fuel types. Used petrol prices rose in Q4 by 0.4% (£38) to £7,922, while hybrid prices remained consistent at £19,694 as these two fuel types saw the strongest demand at auction.

But while EV prices may have cooled, the volume mix of EV continues to grow as companies lead the move from ICE cars to greener alternatives. And some vendors expect to reach BEV/ICE used car parity as early as 2024.

Aston Barclay also predicts that used EV prices will likely settle down in Q1 2023.

“Used EV prices were unlikely to stay at record highs forever and it took the rising cost of living to contribute to a major market correction. An identical Honda HRV petrol and EV being sold in the same auction for £19k and £29k respectively shows the pressure the market has been under,” explained Mark Hankey, Aston Barclay’s chief revenue officer.

“A £10k difference in the price of the same car with different fuel types has seen consumers move towards petrol and hybrids. However, we are on a one-way road towards EVs with new car take up continuing to grow. Some vendors expect to reach BEV/ICE used car parity in 2024 and as EV volumes continue to rise, prices should stabilise,” he added.

The firm’s data also shows that stock shortages in the ex-fleet sector helped inflate used prices to a record high during Q4 of £16,206, a rise of 2.5% (£404) over Q3.

While average age in this sector remained at 41months for the third successive quarter, average mileage rose again to 34,558 miles. Ex-fleet stock will continue to get older too; contract hire fleets report up to 40% of their vehicles are on extended contracts as they wait for replacement new cars.

The full Aston Barclay Q4 report can be found HERE.