Prices for used battery electric vehicles (BEVs) are rising following months of falls, while the fastest-selling used cars are all electric now.

Used BEV prices rose by 0.6% between the beginning of September and early October,

Used BEV prices rose by 0.6% between the beginning of September and early October, according to the latest Indicata Market Watch report.

More importantly, used BEV prices rose by 0.1% over the three and a half months between July and mid-October.

Indicata said all the signs indicate BEV prices have stabilised in the UK after months of falling prices.

Latest data from Cap HPI also reinforces this; showing that used BEV values rose 1% at the three-year mark in September after 24 months of decline.

Used BEV prices had been in freefall for months; Indicata reported in the summer that the average three-year-old used electric car was 43.8% cheaper than 18 months previously.

The BVRLA launched its #happyEVafter campaign last month, calling on the Government last month to step up and help stabilise BEV values. The vehicle rental and leasing trade body warned that the losses in used values were being swallowed by the leasing companies and fleet operators that have championed the switch to zero-emission vehicles.

The #happyEVafter campaign says work is needed to address three critical points for used BEVs: boosting confidence, balancing cost of ownership and expanding accessibility.

Indicata’s latest Market Watch report provides some hope of a turnaround in used BEV values though.

The report also reveals that the increasing demand for BEVs has resulted in their Market Days’ Supply improving to 38 days, the best of all powertrains and the best in the 13 European countries covered in Indicata Market Watch report. The only unknown is how many used EVs are being held in the wholesale market by OEMs and leasing companies. Market Days’ Supply is derived from dividing the currently available supply of inventory by the average daily retail sales rate over the past 45 days.

Further signs of used BEV stability are provided by Indicata’s list of the top three fastest-selling used cars during September. The Renault Zoe was in first place followed by the BMW i3 and Hyundai Ioniq. These are at the lower value end of the market, showing that dealers are prepared to stock used BEVs at this level and are only buying higher priced models when they have a customer order to satisfy.

Indicata data also shows that many younger used cars joining the market are BEVs as manufacturers chase the ZEV mandate target of 22% of new car sales being BEVs across 2024. While new BEV sales reached 17.8% by the end of September according to SMMT statistics, used BEVs accounted for 5.3% of September sales, rising to 10.4% on used cars up to four years of age.

Dean Merritt, Indicata UK’s head of sales, said: “All the signs from our latest Market Watch report are that demand and prices for used BEVs are stabilising, which means leasing companies and OEMs can breathe their first sigh of relief after months of prices falling.

“There is a better balance of supply and demand of used stock in the market and the fastest-selling used cars are all electric.

“However, time will tell whether used BEVs have stablished themselves in the used market with dealers and consumers alike,” he added.