AUCTIONS REPORT EVS UNDER PRESSURE IN STRONG USED CAR MARKET

Electric vehicle values continue to come under pressure in January in an otherwise ‘very strong’ market.

Spokesman for the National Association of Motor Auctions (NAMA) Paul Hill said its members are optimistic and expect the market to remain stable but added that EV values continue to fall, down 4% in January. Separately, BCA said there continued to be “particular pressure” in the used EV market in December with some models seeing “significant pricing corrections” throughout the month.

The market for trade cars below £3500 is particularly popular among auctioneers, with some members reporting record physical attendance and their highest volumes sold since August 2021.

Similarly, to 2022, cars between £3,500 and £15,000 have good conversions. Whilst over £15,000 products are strong, appetite is gradually fading from consumers in comparison to previous months.

The commercial vehicle market is down on volumes compared to expectations, in turn helping to maintain values at a strong level. This can be attributed to reports suggesting that some manufacturers are cutting their supply of new vehicles to daily rental companies.

The one area of the market that continues to be under pressure is Electric Vehicles, with values continuing to fall. On average, cars in this sector have eased by 4% since the start of the year. It is important to note, however, that EVs make up a small proportion of the overall market which means the drop in their