Used EV price growth reported for the first time this year

Used electric vehicles (EVs) experienced the fastest price growth in April, rising by 1.1%, according to Cazana’s latest analysis. This marks the first time EVs led price increases this year, driven by high demand and limited supply of traditional body styles like estates and saloons, which rose by 2.3% and 2.1%, respectively. Hybrids followed with a 0.9% increase, while petrol cars declined by 0.5%, the weakest performance. The shift toward EVs was further highlighted by a 33% surge in sales between March and April, making them the fastest-selling fuel type in the UK retail market. Average advertised prices for three-year-old used cars rose marginally by 0.3%, around £70, though one-year-old vehicles saw a £240 increase (0.9%), while 10-year-old cars softened by 1.2%. Toyota and Volvo emerged as top performers at the three-year mark, with price hikes of 3.6% and 3.1%, respectively. Premium brands like BMW (+1.2%), Mini (+2%), and Mercedes-Benz (+1.3%) also maintained strong momentum. Meanwhile, MPVs declined for the second month, dropping 2.4%, while stock volumes for three-year-old vehicles rose by 2% for the third consecutive month. Cazana’s Derren Martin noted that dealers are gradually raising prices to boost margins, while fleets benefit from stabilized EV residual values, reducing lease risks. The scarcity of used estates and saloons is pushing fleets toward SUVs or extended contracts, accelerating transitions to electric or hybrid models amid high fuel costs and stagnating internal combustion engine values. The analysis suggests the early adopter phase for used EVs is over, with demand outpacing supply in the short term. Fleet managers are prioritizing electrification to cut total ownership costs, while hybrids remain a high-value alternative for those not yet ready for full EV adoption.