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Motorways Inside Track: Why Hybrid Car Prices Are Going Up While Electric Cars Hit a Bump

Motorways Inside Track: Why Hybrid Car Prices Are Going Up While Electric Cars Hit a Bump

Published: August 14, 2024 at 2:48 PM

Today marks the release of our first quarterly Inside Track report, offering insights into used-car sale prices from our online marketplace in Q2. The report highlights rising industry demand for used hybrid vehicles, amid ongoing EV supply changes, concerns over charging infrastructure, and market uncertainty.

James Wilson, COO of Motorway, stated:

“Factors such as manufacturing supply chains, consumer finances, and government decisions all influence pricing trends in the used-car market. Motorway's new Inside Track report provides valuable insights into these changes, based on data from sales on our online marketplace.

“This quarter, we observed that overall demand for used cars remained mostly stable, with average sale prices rising by 0.4%. Some of the top 10 most frequently sold models, including the MINI Cooper, Volkswagen Golf, and Ford Fiesta, have seen notable increases in sales prices.

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“Hybrid and EV sales prices showed differing trends in Q2. We know from research that there’s a strong consumer interest in transitioning to more sustainable vehicles, which is reflected by a 2.9% increase in used hybrid sales prices. In contrast, the average sales price of used fully electric vehicles dropped by 8.1% during the same period, reflecting supply changes and market uncertainty.

“With a new government now in place, there needs to be a greater focus on developing and maintaining EV infrastructure that builds confidence among both trade and consumer buyers. Addressing some of the market’s uncertainties will make it easier for consumers and dealers to buy and sell used EVs, thereby making low-emission driving more accessible to all.”

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Key Takeaways:

Overall demand for used cars remained largely stable in Q2, with average sale prices rising by 0.4%.
Hybrid and EV sales prices moved in opposite directions, with EV sales prices falling by 8.08% and hybrid sales prices increasing by 2.85%. This reflects the industry’s recognition of consumer demand for lower-emission vehicles, though prices are influenced by supply changes and market uncertainty.
The top 10 most frequently sold used cars on Motorway in Q2 continue to be dominated by petrol and diesel models, with certain vehicles seeing a significant increase in sale prices on the platform.
The MINI Cooper remains in high demand as the most frequently sold car in Q2, with average sale prices up by 3.69% QoQ.
Average sale prices for the Volkswagen Golf and Ford Fiesta have also risen, with these models selling for 3.87% and 4.65% more in Q2, respectively.
Consumer research by Motorway shows that 82% of Brits are willing to pay a premium for a used EV, with 32% actively considering a purchase.
The perception of affordability around used electric vehicles is positive, with 41% citing general affordability, including running costs, as a reason for seriously considering a purchase.
Consumers (35%) also mentioned lower prices for used EVs compared to new ones as another key reason for considering them, while sustainability (29%) remains a top priority for many, despite ongoing cost-of-living pressures.
However, concerns about battery health (39%) and ‘range anxiety’ (33%) are among the top worries for consumers, along with charging speeds (29%) and insufficient local charging infrastructure (18%).
One-in-five potential buyers (20%) are also concerned about depreciation of used EVs, and 17% worry about whether local garages have the necessary skills to maintain an electric vehicle.
A third (32%) of Brits want the new administration to invest more in EV infrastructure, like charging points, while grants for buyers (27%) and tax breaks for manufacturers (20%) to make EVs more affordable are also high on the public’s wishlist.

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Consumer Survey

The research was conducted by Opinion Matters, among a sample of 2,005 UK respondents aged 16+. The data was collected between July 10th and July 12th, 2024. Opinion Matters follows the Market Research Society’s code of conduct and ESOMAR principles and is a member of the British Polling Council.

Motorway’s Inside Track

Data is based on sales of used cars less than five years old, via Motorway’s platform, between April 1st and June 30th, 2024 (Q2), compared to January 1st - March 31st, 2024 (Q1).