The Auto Trader monthly market intelligence analyses how current industry trends are impacting new and used car registrations, prices and consumer demand.
Focus: the price of an EV
Only 2% of new EV stock is under £25k (RRP), yet, 20% of all new cars viewed on Auto Trader are in this price range. New electric vehicles are “visually” more expensive than petrol or diesel cars. The average price of a new volume brand hatchback is £31k, 75% more expensive than the average ICE vehicle and the gap has widened, Auto Trader highlights.
“Younger” used EVs are considerably more expensive than an equivalent ICE vehicle. The gap is closer for over 3 year old cars, but there are “very few” older EVs available. Over half of used ICE are about 5 years old, compared to only 6% of EVs.
The Auto Trader reports stresses that it is “critical” to communicate running costs to bridge the perceived cost gap. EV owners save £100 per 1,000 miles on running costs over a 3-year period, with fuel representing the largest saving from owning an EV. Also VED and servicing also represent financial benefits.
New and used car registrations
Auto Trader highlighted supply chain shortages continue to affect the new car market with registrations down -22.0% in August. September is also expected to be impacted. The used car market was strong with trading volumes matching 2020’s post-lockdown recovery.
Auto Trader’s metrics indicate strong signs of underlying demand although supply constraints are limiting availability. Demand shows “no sign of slowing” but supply remains subdued.
Used car prices
Used car prices growth doubled in three months increasing by 17.2% in August. Strong demand and limited supply continue to drive prices upwards.
August was the third consecutive month of record-breaking price increase for used cars, with like-for-like prices up 17.2%. This not only represented the largest single month-on-month increase, but it is also more than double the rate of growth recorded in May.
The average price of a petrol, 3 to 5 year old, volume brand SUV is now £14,527, up £2,525 vs August 2020 and the average price of a petrol, 3 to 5 year old, premium brand SUV is now £27,969 up £2,561 vs August 2020.
Access the full report here
