Press release

Auto Trader Retail Price Index | April 2019

Industry faces low-emission Catch-22 as supply and demand pushes used AFVs out of reach

 

  • Used car market price growth slows to a two-year low
  • AFV have seen the highest rate of growth since August 2018 at 4.7%
  • Price tag of second-hand EVs reach record levels, at £23,361
  • AFVs account for just 1% of stock on Auto Trader

At a time when the average rate of price growth of a used car has slowed to an almost two year[1] low of 1.5%, prices of pure electric vehicles (EVs) are bucking the trend, growing at a rate of 11%.

That’s the latest findings from the Auto Trader Retail Price Index, which highlights the extent consumer economic uncertainty is having on used car prices, with the average rate of growth gradually easing across the total market since January 2019. However, at a more granular level, the decline has been felt most keenly by second-hand diesels with growth now slowing to just 1.3%. Average diesel sticker-prices have fallen to £14,306; the lowest since August 2017.  

Petrol is faring better, albeit marginally. Growth has slowed from 2.4% in March, to just 1.6% last month, the lowest rate since October 2016. The average sticker price of a petrol is £11,200, gaining on last month’s £11,186.

Low emissions bucking the trend

Whilst internal combustion engines (ICEs) are stumbling, their electric powered counterparts are thriving. With an average sticker price of £21,560 in April, used alternatively fuelled vehicles (AFVs) grew at a rate of 4.7%, up from last month’s 3.7% and, indeed, the highest rate of growth since August 2018. But the star of the show is pure electric; at £23,361, the highest price to date, EVs are growing at a double-digit rate (11%).

Stock in the market

The surging prices of low-emission vehicles can be attributed to supply and demand. On Auto Trader, the UK’s largest automotive digital marketplace, AFVs currently account for just 1% of stock listed, whilst petrol and diesel account for 52% and 47% respectively.

“When it comes to low-emission vehicles, the industry is facing a Catch-22 situation. The growing appetite of AFVs offer the industry a great opportunity for growth, but for mass adoption, the average price needs to be more accessible to more people. However, with so few vehicles in the market, even second-hand cars are being pushed out of financial reach for most consumers,” explains Karolina Edwards-Smajda, Auto Trader’s Director of Commercial Products.    

Searches for diesel cars is at an all-time low

The numbers of people searching for diesels continues to decline, with just 41% of all fuel related searches on Auto Trader for the fuel type. Petrol is gaining the share lost by diesel, accounting for 52% of all fuel related searches. Searches for AFVs remains flat at 7%.

[1] Auto Trader Retail Price Index - July 2017

Our CEO Nathan Coe will be live on next week's webinar to answer your questions. You can submit your questions to him in the comments and when you register to join the webinar live at https://t.co/rdtNiD8APu https://t.co/d99VfhPofQ
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2021 was a record year for new electric vehicles on our marketplace which saw a record number of advert views in 2021, with 1 in 5 new car advert views now for an electric vehicle. What EVs do you think we'll see drawing the most attention in 2022? https://t.co/niblnnJaPl
Looking to evolve your business by breaking free of outdated data feeds and enabling your customers to have a real-time view of your digital forecourt? Then check out our ‘Essentials to connected retailing’ masterclass now 👉 https://t.co/VggO5GDvFa https://t.co/hRUW9aXDTf
We’re still faced with an element of uncertainty when it comes to the pandemic which means you need to be prepared for any eventuality. So in this week’s tip of the week, @AndrewKorpela shares some top tips on how to make sure you're prepared for whatever is thrown at you next. https://t.co/9cKawLT6Q9
In his latest update, our CEO Nathan Coe shares our latest market insights, including an analysis of consumer demand and pricing, and reveals our plans for 2022. https://t.co/oyxwpJf2U1
With record numbers of new electric vehicle sales and, as we reveal in our latest blog, an electric vehicle being the fastest selling of any used vehicle in 2021, last year really was a victory for voltage 👇 https://t.co/j4Al3nByBL
In our latest Monthly Market Intelligence Report, we analyse the 3 key trends that came to define the automotive industry in 2021, record demand, the growth in used car prices and the acceleration of EV adoption 👉https://t.co/tVW6vpQjxm Will these trends continue through 2022? https://t.co/rITl15odBm
A quick summary of what we have covered in today's webinar from @ClarkRjoclark. https://t.co/QFgNQYhCR8
Prices then are still strong, but we are still seeing under-priced stock on our marketplace which means there is profit being left on the table. It's key then to monitor the live market prices and re-price to the live market value to avoid missing out on profit. https://t.co/3jGvyFVPIn

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