Electric Cars

Sharp increase in resale values of electric cars

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Readers who are in the motor trade will know that in this industry good news is often accompanied by bad news – hence the need for good motor trade insurance. Today is no exception. Let us first wade through the bad news – because the good news is worth waiting for.

Diesel has become a swearword among car buyers after what is now referred to as the ‘dieselgate scandal’ in 2015, when Volkswagen was caught red-handed cheating regulators and misleading car buyers by using software to falsify nitrogen oxide emissions during vehicle tests.

Nearly three years later, the sales of diesel cars have plummeted and their trade-in values have stagnated, while many car manufacturers have rushed towards the manufacture of more environmentally friendly electric cars.

This brings us to the good news. According to a report from online used car service Autorola the average resale price of a plug-in electric vehicle has increased by a whopping 41% during the first three months of 2018.

This increase managed to boost the overall used car resale price by 5.3% and means plug-in electric vehicle’s resale prices are increasing at a much faster rate than petrol and diesel vehicles. In the case of diesel cars there was, of course, no increase at all.

Taking into account all categories, used car values increased to an average cost of £10,008 during the first three months of this year, compared to £9,504 during the last quarter of 2017. It would appear that used cars are increasingly popular among UK car buyers – which could be the result of a drop in discretionary income among a large percentage of the population in recent years.

The company said in a press release that the average selling price of an electric vehicle increased from £13,981 during the fourth quarter of 2017 to £19,789 during Q1, 2018.

The press release added: “The number of EVs sold was relatively small, but it shows that dealers are beginning to consider EVs to add to their stock mix. Average age falling from 15 months to just 9 months, and mileage almost halving from 6,086 to 3,662 also helped contribute to this price increase.”

The latest plug-in electric cars, of course, have a lot more to offer than their counterparts of only a few years ago, so this should not come as a big surprise.

The company went on to say that sales of diesels increased by 48% between Q4, 2017 and Q1, 2018, but that prices were still strong in spite of the increased volumes on the market. The higher volumes could of course also point to many owners trying to get rid of their diesel cars before they depreciate too much.

John Mitchell, Autorola’s UK group sales director, confirmed that demand for used cars has been very strong during the first three months of this year. This, he added, shows that independent auto dealers were selling more cars, and that franchised dealers were shifting their focus to used car sales as new cars sales continued dropping.

He concluded: “Diesel prices remain strong despite the higher volumes we saw coming onto our online portal, while used petrol prices have reached an all-time high. The used market has had a very positive quarter one.”

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