Demand for used BEV surge by 57% in Q4
Discussion
“The used car market experienced significant growth throughout 2024, and with the release of Q4 figures today, it has now seen eight consecutive quarters of expansion”, said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), commenting on the latest SMMT’s used car figures.
In 2024, the used car market grew by 5.5%, reaching 7,643,180 transactions. From October to December, transactions increased by 4.0% to 1,746,051, marking eight consecutive quarters of growth.
Throughout the year, demand for used battery electric vehicles (BEVs) surged by 57.4%, reaching a record 188,382 units and setting a new market share high of 2.5%, up from 1.7% in 2023. Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also saw significant growth, rising by 32.2% to 92,120 units and 39.3% to 306,114 units, respectively.
Petrol and diesel vehicles made up 92.1% of all used car transactions, a slight decrease from 94.3% the previous year. Petrol remained the leading choice, rising by 6.8% to represent 57.1% of the market, while diesel transactions declined by 2.4%, accounting for 35.0% of all sales.
Sue Robinson added: “The used car market demonstrated remarkable resilience throughout 2024, with transactions growing by 5.5% compared to 2023. This growth comes amid the new car market seeing four consecutive months of contraction, suggesting a potential shift in consumer preference toward the used market.
"It is encouraging to see used EVs achieve a record market share and continue their upward trend. As the ZEV mandate quota increases to 28% this year, used EVs will play a crucial role in supporting consumers through the transition to electric vehicles.
"Looking ahead to 2025, several factors could influence the used car market, including the introduction of Vehicle Excise Duty on electric vehicles and the Expensive Car Supplement. Throughout the year, NFDA will continue lobbying for government support, including additional incentives and investment in charging infrastructure, to boost demand during the transition to electric vehicles."
In 2024, the used car market grew by 5.5%, reaching 7,643,180 transactions. From October to December, transactions increased by 4.0% to 1,746,051, marking eight consecutive quarters of growth.
Throughout the year, demand for used battery electric vehicles (BEVs) surged by 57.4%, reaching a record 188,382 units and setting a new market share high of 2.5%, up from 1.7% in 2023. Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also saw significant growth, rising by 32.2% to 92,120 units and 39.3% to 306,114 units, respectively.
Petrol and diesel vehicles made up 92.1% of all used car transactions, a slight decrease from 94.3% the previous year. Petrol remained the leading choice, rising by 6.8% to represent 57.1% of the market, while diesel transactions declined by 2.4%, accounting for 35.0% of all sales.
Sue Robinson added: “The used car market demonstrated remarkable resilience throughout 2024, with transactions growing by 5.5% compared to 2023. This growth comes amid the new car market seeing four consecutive months of contraction, suggesting a potential shift in consumer preference toward the used market.
"It is encouraging to see used EVs achieve a record market share and continue their upward trend. As the ZEV mandate quota increases to 28% this year, used EVs will play a crucial role in supporting consumers through the transition to electric vehicles.
"Looking ahead to 2025, several factors could influence the used car market, including the introduction of Vehicle Excise Duty on electric vehicles and the Expensive Car Supplement. Throughout the year, NFDA will continue lobbying for government support, including additional incentives and investment in charging infrastructure, to boost demand during the transition to electric vehicles."
I've been trying to highlight this for quite a while now.
The number of used car trades outnumber the new car sales at at a ratio of 3.8:1.
If one compares private new car sales at 800K then the ratio is 9.6:1
The issue for used BEV sales is a lack of supply which will constrain BEV ownership for a quite a few years to come. Post 2030 the situation should look much better.
The number of used car trades outnumber the new car sales at at a ratio of 3.8:1.
If one compares private new car sales at 800K then the ratio is 9.6:1
The issue for used BEV sales is a lack of supply which will constrain BEV ownership for a quite a few years to come. Post 2030 the situation should look much better.
Sorry but I'm not seeing it, while demand may be there it does not seem to be having an impact on the haemorrhaging deprecation on EVs.
Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
The demand is there at current market prices. The fact that those prices represent a significant markdown from new car prices isn't really the issue. You may well be experiencing more depreciation then you hoped for, but that doesn't mean there isn't growing demand in the secondary market.
andburg said:
Sorry but I'm not seeing it, while demand may be there it does not seem to be having an impact on the haemorrhaging deprecation on EVs.
Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
I suspect you made the error of assuming a PCP was good deal and it was based on retail value not the discounted price which is the true value of the new car. Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
Basically the car true value was never the retail price on the windscreen.
We've seen this all before when there was a 35% mark up and fleet buyers could easily negotiate 30% discounts. Obviously this pre-dates EVs.
If the company is not providing a car then why anyone would buy new is beyond me. Exotic/Supercars excepted of course.
https://www.smmt.co.uk/2024/11/pre-loved-evs-soar-...
https://motorway.co.uk/sell-my-car/guides/electric...
Seams like steady growth, but basically Petrol ate Diesels lunch. In 2024 new cars had been heavily discounted, but the Mini EV & Telsa Y revamps for example seam to a lot more expensive. We will see how this all plays out with the Chinese brands coming into play.
Edited by ashenfie on Tuesday 11th February 16:24
Nomme de Plum said:
The issue for used BEV sales is a lack of supply which will constrain BEV ownership for a quite a few years to come. Post 2030 the situation should look much better.
25k used EV's registered between 2019 and 2024 for sale on Autotrader priced from £4k to £400k. Is supply really an issue?nickfrog said:
From my observation used EV values have been holding up very well over the past year. Meg E-tech, ID3, EV6.
This does appear to be the case. After the massive crash in values things really haven't moved all that much in the past year from what I've seen. As above though there are a lot of used cars available so does look to be a gap between what people are willing to pay and what dealers are pricing at?Edited by SWoll on Tuesday 11th February 16:38
Nomme de Plum said:
andburg said:
Sorry but I'm not seeing it, while demand may be there it does not seem to be having an impact on the haemorrhaging deprecation on EVs.
Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
I suspect you made the error of assuming a PCP was good deal and it was based on retail value not the discounted price which is the true value of the new car. Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
Basically the car true value was never the retail price on the windscreen.
We've seen this all before when there was a 35% mark up and fleet buyers could easily negotiate 30% discounts. Obviously this pre-dates EVs.
If the company is not providing a car then why anyone would buy new is beyond me. Exotic/Supercars excepted of course.
https://www.smmt.co.uk/2024/11/pre-loved-evs-soar-...
https://motorway.co.uk/sell-my-car/guides/electric...
The finance companies don’t want our situation to be the norm, who’s going to be paying the final lump sum when it’s worth less? They get it handed back and send it to auction where they dispose of it and rather than getting £13k they might get £10k. They’re losing more in the hand back than they gained in interest.
PBCD said:
andburg said:
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Surely that's a good thing??A 3 year old model 3 with 30-40k for £20k, that’s half of what it was new.
Demand may have surged, but so has supply. Which manufactures quill have to continue to discount if they want private sales.
The fleet and salary sacrifice element of the market is pretty much saturated.
Whether buying new or used it’s worth being picky or pushing for a deal.
That said, if you’re doing around 10k miles a year, then you’re probably only saving £100 a month on fuel if you’re buying an EV over a ICE vehicle. So if the PCP is £100 a month more for a EV you’re no better off.
Swings and roundabouts. The EV will probably be a better drive for mundane stuff, but a bit annoying on longer journeys.
That’s assuming you can charge at home on a cheap EV tariff. If you can’t the used EV looks much closer in cost to a ICE vehicle. You also don’t get a fee charging point and for 10k miles a year the EV tariffs don’t always make sense anyway.
The fleet and salary sacrifice element of the market is pretty much saturated.
Whether buying new or used it’s worth being picky or pushing for a deal.
That said, if you’re doing around 10k miles a year, then you’re probably only saving £100 a month on fuel if you’re buying an EV over a ICE vehicle. So if the PCP is £100 a month more for a EV you’re no better off.
Swings and roundabouts. The EV will probably be a better drive for mundane stuff, but a bit annoying on longer journeys.
That’s assuming you can charge at home on a cheap EV tariff. If you can’t the used EV looks much closer in cost to a ICE vehicle. You also don’t get a fee charging point and for 10k miles a year the EV tariffs don’t always make sense anyway.
I'm not sure demand has really surged, more that people who are willing to spend e.g. £10k on a used car now have some good EV choices.
A lot of EV transactions also means lots of people are flogging them instead of keeping them? But that's the 'pay monthly merry go round' for you.
Of the people I know who are likely to buy/lease new cars, most still seem to be saying they've got one more IC car to come. A few taking longer term views think their current IC car might be their last.
Personally, there is no impetus to change the current cars, both are probably good for another two years at least.
Used cars that interest me have got cheaper in the last year, but it looks like EV values have fallen harder in the £5k to £15k ecosystem?
A lot of EV transactions also means lots of people are flogging them instead of keeping them? But that's the 'pay monthly merry go round' for you.
Of the people I know who are likely to buy/lease new cars, most still seem to be saying they've got one more IC car to come. A few taking longer term views think their current IC car might be their last.
Personally, there is no impetus to change the current cars, both are probably good for another two years at least.
Used cars that interest me have got cheaper in the last year, but it looks like EV values have fallen harder in the £5k to £15k ecosystem?
SWoll said:
This does appear to be the case. After the massive crash in values things really haven't moved all that much in the past year from what I've seen. As above though there are a lot of used cars available so does look to be a gap between what people are willing to pay and what dealers are pricing at?
Not sure as stock rotation on EV is faster than on ICE according to AT, sorry can't find a link. Which would explain the relative price stability.andburg said:
Sorry but I'm not seeing it, while demand may be there it does not seem to be having an impact on the haemorrhaging deprecation on EVs.
Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
Isn't that sort of depreciation par for the course? A brand new one through Carwow is 23K, so GFV of 13k for a 3 year old seems about right to me. Retaining 57% of value after 3 years is pretty good / optimistic.Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
Discombobulate said:
andburg said:
Sorry but I'm not seeing it, while demand may be there it does not seem to be having an impact on the haemorrhaging deprecation on EVs.
Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
Isn't that sort of depreciation par for the course? A brand new one through Carwow is 23K, so GFV of 13k for a 3 year old seems about right to me. Retaining 57% of value after 3 years is pretty good / optimistic.Wife's ZS is 1 year away from the end of the PCP. 15k miles ZS Trophy standard range with full MGSH, looking at current market its worth maybe £16k retail, final payment is a smidge under £13k. There isn't a hope in hell of being able to PX it in with any equity in 9-12 months time.
I'd argue the number of sales is because used values have plummeted so far they're now in line with the petrol equivalent with potential to slash running costs.
Not just limited to MGs either, looked at an ID Buzz the other day, cheaper than the T7 multivan.
OutInTheShed said:
I'm not sure demand has really surged, more that people who are willing to spend e.g. £10k on a used car now have some good EV choices.
In contrast I was browsing autotrader for used EVs out of curiosity and under 10k the choices were basically a Leaf, or a Zoe. I'm not seeing those good options you mention. In my case I'd need something with 100 miles of range in the depths of winter, which those would struggle to meet (I borrowed a gen 1 leaf in 2015 when it was -2degC all week, 60 miles at best), so you've got to up the budget towards £15k, where you start to see the more recent vehicles with non-urban ranges that have depreciated heavily (MX-30, Honda E, e-208, etc.). PHEVs was even worse - Outlanders mainly, you might squeak a high mileage 330e/C350e. Whereas £10k for an ICE car brings so many options. Right now I have access to a company vehicle and that will be electrified but if I suddenly had to go back to private I'd be looking at ICE or self-charging hybrids because the used BEV options just aren't palatable in my case. That won't be true for everyone.RenesisEvo said:
In contrast I was browsing autotrader for used EVs out of curiosity and under 10k the choices were basically a Leaf, or a Zoe.
I just looked, the list under £10k is much more than Leafs and Zoe'sMany examples of the following :
- E-Golf
- MG5
- Ionic
- Corsa-e
- MG ZS
- Kona
- Set Mii
- Peugeot E-208
- Smart FourFour
- Smart ForTwo
- BMW i3
- Nissan e-NV200
OutInTheShed said:
I'm not sure demand has really surged, more that people who are willing to spend e.g. £10k on a used car now have some good EV choices.
A lot of EV transactions also means lots of people are flogging them instead of keeping them? But that's the 'pay monthly merry go round' for you.
Of the people I know who are likely to buy/lease new cars, most still seem to be saying they've got one more IC car to come. A few taking longer term views think their current IC car might be their last.
Personally, there is no impetus to change the current cars, both are probably good for another two years at least.
Used cars that interest me have got cheaper in the last year, but it looks like EV values have fallen harder in the £5k to £15k ecosystem?
It is the SMMT that says demand for used BEVs is very good. However they are an industry body so hardly independent. A lot of EV transactions also means lots of people are flogging them instead of keeping them? But that's the 'pay monthly merry go round' for you.
Of the people I know who are likely to buy/lease new cars, most still seem to be saying they've got one more IC car to come. A few taking longer term views think their current IC car might be their last.
Personally, there is no impetus to change the current cars, both are probably good for another two years at least.
Used cars that interest me have got cheaper in the last year, but it looks like EV values have fallen harder in the £5k to £15k ecosystem?
https://www.smmt.co.uk/2024/11/pre-loved-evs-soar-...
We bought 7.7M used cars last year so the used BEV pool has to grow quite a bit before used is an easily obtainable option for many people.
This could be the approximate BEV population from 2024-2035 assuming mandate percentages achieved so even in 2035 there would still be circa 18M ICEs on our roads. Post 2035 BEV would increase at circa 2M per annum.
1 368 000
1 900 000
2 527 000
3 249 000
4 237 000
5 491 000
7 011 000
8 607 000
10 279 000
12 027 000
13 851 000
15 751 000
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