Pent up used EV demand will push up prices still further
Used EVs set to compete with lowered priced new EVs entering the market
BEVs were the UK’s fastest-selling used cars in July, but a stock shortage threatens to take the heat out of the sector according to INDICATA’s latest Market Watch report.
A limited supply of used EVs is entering the market caused by leasing fleets continuing to extend contracts, rental companies retaining rather than de-fleeting their stock and dealers retaining part exchanges.
That signals a supply shortage of used EVs unless a supply tap is turned on somewhere over the coming months.
“Used EVs have been in high demand during the summer months which is likely to leave the market with a supply shortage. The pent-up demand will push prices up even further,” explained Jon Mitchell INDICATA UK’s group sales director.
“The danger is that second hand EVs will begin to compete with the growing number of cheaper new EVs coming into the market. That will leave retail buyers with a decision on whether to buy a new EV or used EV,” he added.
INDICATA’s report confirms that levels of used car stock were 3.0% down between 1 July and 1 August which contributed to sales falling by 10% in the first seven months of 2022 compared with 2021. Sales were also down 6.4% on the same period in 2019 which was the last pre-Covid year.
*Article Source www.indicata.co.uk/