Value of used alternative-fuel vehicles continues to grow

The average used-car values of alternative fuel vehicles continue to rise in the first quarter of 2016, according to the latest Auto Trader Retail Price Index.

Alternative fuel vehicles (AFVs), which includes hybrid and pure electric cars, have increased in value by an average of £1,502 year-on-year, a seven per cent increase over the same quarter in 2015.

What’s more, the gap over conventionally powered wheels continues to grow, especially over diesel, where values for average used cars continue to decline year-on-year. There are differences, however, in the different types of alternative fuel vehicles. Pure electric vehicles increased by £750 year-on-year, while average hybrid values went up by an even more muscular £1,683.

Karolina Edwards-Smajda, Auto Trader retailer & consumer products director said: “While we are seeing more used alternative fueled vehicles turning up on dealers’ forecourts, the increase in ad views points to more consumers than ever looking to buy. Used AFV values are rising significantly with a four-digit increase as buyers are drawn in by low fuel running costs, current road tax rates that mean AFVs are often free to tax and, for some, exemption from the London Congestion Charge. While both electric and hybrid are growing in value, it’s the hybrid of electric and conventional power that are proving particularly popular with used car buyers. This choice offers the greatest flexibility for a consumer unlike pure electric where the more limited range isn’t suitable for all car buyers.”

The average values for used petrol cars have also risen year-on-year by £790 (8.3%). The value of diesels however continues to decline, with these cars being worth less on average than a comparable petrol car.

The average value of a diesel car dropped by £138 (-1.3%) and represents the eighth month diesel’s average used car values are less than a petrol’s. Diesel’s used car market share increased to 47.91% from 46.94%, while petrol’s market share dropped from 52.13 to 50.91%.

The volume of diesel cars in the used market place continues to grows as ex-fleet stock enters the marketplace. There are currently over 361,000 used models advertised on Auto Trader at any time compared to nearly 337,000 in the same quarter 2015.

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