Heycar data confirms that demand for second hand EVs rose by 5.9% in the third quarter of 2022 with petrol at 2.19% and diesels a flat 1.54% increase.
Sarah Tooze, Consumer Editor at heycar, says: “The past quarter has been a difficult time for the country. With inflation rising and falling consumer confidence, most markets have taken a hit. However, according to our Used Car Price Index, used car prices have remained stable over Q3 2022 despite these external events.
Figures show that the average asking price of a three-year-old car rose just 2.19% over the quarter, with five-year-old cars seeing a 0.34% decrease over the same period.
She added: “Used car prices are remaining stable due to the lack of new car stock, meaning used car stock is harder to come by and therefore values are inflated.
“In October, average asking prices for both three-year-old and five-year-old cars were up on the previous month. Three-year-old cars saw the second biggest increase in values this year, up by 4.55% (after August’s 13.66% rise), while five-year-old cars values rose slightly for the second consecutive month, up 1.78% in October and 1.56% in September.
“However, used car values are not as high as they were in 2021 with the average asking price of a three-year-old car down 2.39% year-on-year and the average asking price of a five-year-old car down 3.68%.
“Mileage continues to play a significant role in used car prices. For example, three-year-old cars with under 70,000 miles on the clock saw strong gains in October, with cars between 20,000 and 29,999 miles and 60,000 to 69,999 miles seeing the biggest price increases at 7.80% and 6.08% respectively. However, higher mileage cars saw a substantial drop, with the average value for cars with 70,000 to 79,999 miles falling by 7.78%.”
Heycar’s Used Car Price Index also highlights the difference in brands when comparing three-year-old cars over Q3. Prices of popular brands like Ford and Volkswagen stayed steady over Q3, increasing by 1.86% and 0.77% respectively. However, more premium brands such as Mercedes-Benz and Jaguar saw a larger increase of 5.98% and 7.12%.
Ms Tooze continued: “The stark differences in these prices are partially the result of the semiconductor shortage and the long term repercussions that it is having on the used car market. Mid-range cars tend to require less components than high-end brands, meaning that more new car stock can appear on the market, therefore easing pressure on used car stock.
“Consumer buying behaviour also played a factor, as we can see when we compare the most popular three-year-old vehicles to the most popular five-year-old vehicles.