Cazana’s latest market analysis reveals a significant shift in the used car landscape, as electric vehicles (EVs) topped the charts for price growth for the first time this year. The surging demand for used EVs and the scarcity of traditional body styles are driving a market shift, allowing dealers to raise prices while offering fleet operators more stable residual values for their electric assets.
According to the leading provider of automotive data intelligence, growth was driven by rising pump prices and a surge in consumer appetite for alternative-fuel vehicles. As a result, EVs were the fastest-selling fuel type in the UK retail market in April. Cazana’s data highlights a significant shift in fuel-type buyer behaviour, with 33% more EVs sold in March and April than in the first two months of the year.
In a landmark month for sustainable transport, EV prices led the market with a 1.1% increase. Hybrids followed closely with a 0.9% rise, marking a total growth of 3% over the last two months as they continue to serve as the preferred “halfway house” for cautious consumers. Diesel showed a modest increase of 0.3%, and petrol recorded the weakest performance, down a negligible 0.5%.
The broader used car retail market remained robust throughout April, with average advertised prices for three-year-old stock increasing marginally by 0.3% (c.£70). Performance varied across age brackets; 1-year-old car prices jumped by 0.9% (c.£240), while 5-year-old cars remained stable (down 0.1%), and 10-year-old cars softened, dropping 1.2% (c.£90).
Stock volumes for three-year-old vehicles rose for the third consecutive month, increasing by approximately 2% compared to March.
Toyota and Volvo emerged as the month’s strongest performers at the three-year age point, seeing price increases of 3.6% and 3.1% respectively. This marks a notable resurgence for Volvo, whose prices softened last year. Premium brands BMW (+1.2%), Mini (+2%), and Mercedes-Benz (+1.3%) also maintained their strong year-to-date momentum.
In terms of body styles, supply-and-demand dynamics continue to favour traditional, now lower volume formats, with estates and saloons increasing by 2.3% and 2.1%, respectively, following similar gains in March. Hatchbacks rose by 1%, while MPVs struggled for the second month running, dropping 2.4%.
Reflecting on the April data, Derren Martin, automotive expert at Cazana, said: “The used car retail market in April continued in a similar vein to the earlier months this year, with its overall strength. Volumes increased, but dealers remained keen to edge prices up where possible, increasing margins slightly.
“As predicted, we are now seeing a surge in the sale of used EVs, although whether demand will match supply in the long term remains to be seen, with manufacturers focusing more on new car EV sales than used.
“It will be interesting to see whether retailers can continue to edge prices up in May, traditionally a slower month due to Bank Holidays distracting consumers from the forecourts and continued concerns from the war in the Middle East.”
The shift toward EV acceleration is also stabilising fleet operations by tempering depreciation and potentially improving future residual values. This shift reduces lease risk premiums and creates a more positive window for de-fleeting three-year-old stock, while the steady performance of hybrids provides a high-value risk hedge for those not yet ready for full electrification.
Conversely, a scarcity of used estates and saloons is driving up replacement costs, forcing fleets to opt for SUVs or extended contracts. With internal combustion engines facing a “double squeeze” of high pump prices and stagnating asset values, managers are incentivised to accelerate transitions to electric or hybrid models to protect their total cost of ownership.
Derren adds: “April’s data highlights that the early adopter phase of the used EV market is over. For fleet managers, this provides the confidence needed to lean harder into electrification, if they haven’t already, knowing that there is now a hungry and stable secondary market ready to buy those vehicles when they are de-fleeted.”