Recent data from Dealer Auction’s EV Performance Review (EVPR) highlights a promising surge in the trade demand for alternatively fuelled vehicles (AFVs). September 2024 saw a 13% increase in AFV sales, signalling strong momentum for hybrids and EVs within the trade-to-trade market.
Key Trends in September 2024
Dealer Auction’s platform data reveals a 13% rise in AFV sales in September, alongside a healthy conversion rate of approximately 60%. Despite a slight dip in the average sold price (£14,342, down 2.6%) and retail margin (£2,740, down 7.6%), prices remain £700 higher than early 2024 levels, indicating enduring market resilience.
Additional metrics show us that interest is still growing:
- Ad views: Up by 4.5% month-on-month.
- Bids: A 13.5% increase reflects growing dealer confidence.
- Vehicle profile: AFVs listed are getting younger (average age of 4.1 years) and clocking fewer miles (just under 38,000).
This data points to an increasingly competitive market, where newer, lower-mileage hybrids attract attention and trade activity.
Hybrids Are Ahead
Plug In Electric Hybrids continue to overshadow fully electric vehicles in trade sales, claiming all top 10 spots for volume sold and 90% of the top 10 by CAP performance and gross margin. Toyota stands out, dominating with 40% of the top spots for CAP performance and gross margin and 50% of sales volume in the top 10.
Meanwhile, Lexus excels in profitability metrics, with the NX and RX models achieving the highest margins. Quick sellers include models from Mitsubishi, Kia, and Toyota, averaging 30-36 days to retail.
While hybrids clearly dominate, the Nissan Leaf holds the torch for fully electric vehicles as the only EV in the top 10 by volume, albeit with a retail turnaround time exceeding 50 days.
Consumer Hesitation on EVs Persists
Dealer Auction’s Marketplace Director, Kieran TeeBoon, think that the continued dominance of hybrids to consumer concerns around EV infrastructure, battery life, and charging accessibility. However, he remains optimistic about the future of EVs:
“As infrastructure expands and battery technology improves, we anticipate stronger growth in fully electric vehicles. Dealers must stay agile, leveraging insights to capitalise on shifting trends.”
What Dealers Should Focus On
To stay ahead, TeeBoon advises:
- Monitor Data Trends: Use data insights like CAP performance and gross margins to guide purchasing decisions.
- Diversify Inventory: Balancing hybrids and EVs can hedge against fluctuating consumer preferences.
- Adapt Quickly: With a rapidly evolving market, keeping an eye on government policies, consumer behaviour, and technological advancements is essential.
John is the Editor and Spokesperson for Electric Car Guide.
With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.
John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.
