Dealer Auction platform sees 13% growth in September AFV sales

Trade demand for alternatively fuelled vehicles (AFVs) continues to grow steadily, with Dealer Auction’s latest EV Performance Review (EVPR) reporting a 13% increase in vehicles sold during September.

The trade-to-trade platform saw a conversion rate of 60%, slightly better than the previous month, signalling solid market interest in AFVs despite slight dips in average selling price and retail margins.

The average sold price for AFVs stood at £14,342, down by 2.6% from the previous month, while retail margins dipped by 7.6% to £2,740.

However, the selling price remains approximately £700 higher than in the first quarter of the year. Interest in AFVs is growing, as evidenced by a 4.5% increase in ad views and a 13.5% rise in bids, pointing to a strengthening market.

According to Kieran TeeBoon, Dealer Auction’s marketplace director, "The growth in alternatively fuelled vehicle sales on our platform, particularly the dominance of hybrids, reflects the broader shift towards more sustainable vehicle options in the trade market. While price adjustments are a natural part of this evolving landscape, the rising interest...signals strengthening confidence in the AFV market."

Hybrids continue to dominate the AFV market, occupying all top 10 spots by volume sold and 90% of the top 10 by CAP performance and average gross margin.

Leading hybrid models include Lexus RX, with an average gross margin of £3,624 and an average of 53 days to sell, followed by the Hyundai Tucson and Lexus NX. The Nissan Leaf remains the only fully electric vehicle in the top charts, taking an average of 51 days to sell.

Toyota stands out as a strong performer in the AFV space, with models such as the Prius, Auris, and CH-R ranking in the top 10 for both CAP performance and sales volume. In contrast, Tesla and Volvo, which made notable appearances during the summer, have fallen outside the top 10 as autumn progresses.

While hybrids dominate the AFV market, TeeBoon notes that fully electric vehicles are still facing challenges, primarily due to consumer concerns around charging infrastructure and battery life.

"Hybrids continue to outperform fully electric vehicles in the trade-to-trade market," he explains. "However, as infrastructure expands and battery technology improves, we anticipate stronger growth in fully electric vehicles."

With AFV sales expected to rise even further, TeeBoon said it was increasingly important to use the right data to understand market trends. "It’s vital that dealers keep an eye on the data... Dealers need to use the right combination of metrics to determine the most effective vehicle mix for their forecourts."