MotoNovo Finance’s Q1 Used Inventory Insight report reveals that while battery electric vehicles (BEVs) were in stock for an average of 32 days, ICE models were stocked for 59 days.
This perhaps surprising reality is one of the key findings from MotoNovo’s latest Used Inventory Insight report for Q1.
As one of the UK’s largest used vehicle stock funders, the business has a wealth of data on what has been selling and how quickly. What is abundantly clear is that at an average trade purchase price of £21,097, dealers have been able to find willing BEV buyers quickly, based on the rapid stock turn.
The overall price comparison with ICE cars is interesting; in stock for an average of 59 days, with an average dealer purchase price of £14,451, the overall car parc is older and cheaper. However, there are signs that price parity between EVs and ICE cars is emerging on an age like-for-like basis.
Reflecting on the demand for BEVs, Chris Rowthorn (pictured), Director of Motor Sales Operations at MotoNovo, observes: “In the face of increasing new EV supply, growing price competition and the pressure created by the government’s Zero Emission Vehicle (ZEV) targets, there is the potential for used EV values to decline, making them more affordable in the future. Factor in the fact that EVs have fewer mechanical parts to go wrong and that with a home charger, they are typically cheaper to run than an ICE car, and the potential for increased demand for EVs is evident.”
In terms of affordability, based on overall averages, ICE cars are cheaper than BEVs. However, this average price differential between ICE and BEV cars can be attributed to the broader age range of ICE cars, with the used BEV market yet to reach a similar maturity. Within this, ICE cars remain impacted by the post-COVID semiconductor shortage.
The traditional demand for cars in the 3-6 age category remains valid, but availability remains constrained. The inevitable consequence has been increased stocking of cars in the 6-9 age range.
Looking ahead, Chris expects the trend towards an ageing car parc to ease, reflecting: “A little over 40% of stock purchased and settled in the last quarter came from the 3-6 age range. It was a percentage almost matched by cars in the 6-9-year-old segment. While we expect the average age to start declining slowly as supply improves and as the broader economy and disposable income levels improve, consumers may well remain ‘bruised’ by the impact of cost-of-living increases.
“It will be interesting to see how as consumers look to change the running cost affordability and increasing supply and, with it, potentially lower purchase costs impact decision making. We will be watching this very closely.”
