Used EV market sees strong sales and price stabilisation

The used battery electric vehicle (BEV) market is undergoing significant changes, with rising sales and stabilising prices indicating increased consumer acceptance and demand.

Recent data from Cap HPI reveals that the average time to sell a three to five-year-old BEV has dropped to 35 days, outperforming petrol and hybrid vehicles, which take an average of 41 days.

This marks a notable improvement from January when BEVs required 42 days to sell, while petrol and hybrid vehicles took 48 and 43 days, respectively.

Chris Plumb, head of current car valuations at Cap HPI, commented: "The rise in the supply of BEVs is putting pressure on certain models, particularly as buyers become more discerning. Attractive offers on new vehicles further influence the market, making new BEVs more appealing than their nearly new counterparts. In many cases, the monthly payments for Personal Contract Purchase (PCP) plans on brand-new BEVs are lower than those for used models, limiting demand for younger, second-hand vehicles. However, the data shows clear demand for retail-ready, three to five-year-old BEV models."

Across all age groups, BEVs have remained the fastest-selling fuel type, averaging 39 days to sell in February. Hybrid vehicles followed at 40 days, petrol vehicles at 42 days, plug-in hybrids (PHEVs) at 44 days, and diesels at 46 days.

Car supermarkets led the market, selling three to five-year-old BEVs in an average of 33 days. Franchised retailers followed at 34 days, while independent dealers took 43 days.

Among BEVs, the Tesla Model 3 continues to perform exceptionally well, averaging just 28 days to sell in February.

Stabilisation of Used BEV Prices

Meanwhile, the latest Indicata Market Watch used car pricing insights report suggests that used BEV prices may have finally stabilised.

Between July 2024 and January 2025, BEV prices moved by just 0.8%, translating to only a £160 change on a typical £20,000 used car.

Used BEVs accounted for a record 5.9% share of the total used market in January, the highest since Indicata began tracking the data five years ago. This trend is critical as used BEV stock reached nearly 8% of all used cars available at UK dealerships at the end of January—the highest number on record.

Normally, an influx of used BEVs would trigger pricing corrections, but Indicata notes that the current mix of stock and price points is varied enough to prevent market distress.

Additionally, 15% of sub-two-year-old used cars are now BEVs, while 10% of cars between three and four years of age fall into this category, contributing to broader market stability.

"Having seen monthly used BEV prices drop between 5-10% in 2023, a price movement of just -0.8% between mid-2024 and January 2025 shows just how far demand and acceptance for used BEVs have come," said Dean Merrit, head of sales at Indicata UK.

"The number of used BEVs entering the market will continue to grow as OEMs aim to meet their Zero Emissions Mandate targets. But if the balance of supply and demand continues in 2025 and beyond, BEVs will gain the stability they need to establish themselves in the used market," he added.