Demand for used EVs in the UK has soared on the back of falling prices, boosting sales and reducing stocks.

The all-electric Mercedes EQC was the fastest-selling used car in the UK during March

Indicata’s new Market Watch report reveals the supply of used EVs fell by 59.1% over the first 100 days in 2023 thanks to the reduction in prices.

The latest report shows the Market Days’ Supply of EVs fell from 169 to just 69 days between 1 January and early April, fuelled by a 19.9 percentage point fall in prices during that period.

EVs accounted for 2.96% of the used market in March, which was their highest ever share.

It’s extremely encouraging news for fleets and dealers and a step in the right direction, according to Indicata UK group sales director Jon Mitchell.

“The fall in used EV prices has certainly breathed life into the market and has helped fleets and dealers shift some aging stock. Dealers are prepared to buy used EVs now that prices have fallen as they represent less of a financial risk for their businesses.

“The used EV market is moving, which is good news just as fresh supplies of de-fleeted cars and part exchanges arrive in the market following the March plate change,” he added.

However, EVs remain the slowing-selling used powertrain type, despite the encouraging fall in market supply. The sector’s 69 days of supply in the market compares with petrol (40 days), diesel (43 days) and hybrid (49 days).

Indicata said further price reductions could be needed to fuel demand, especially for newer, more expensive EVs.

Ironically, the fastest-selling used car in the UK during March was the all-electric Mercedes EQC, followed by the Dacia Duster and Kia Sportage. The top-selling used car in the same period remained the Ford Fiesta followed by the VW Golf and Mercedes A-Class.

“The fastest-selling used car typically changes each month depending on current consumer demand, but the top-selling table remains very static with the Fiesta, Golf, A Class and Nissan Qashqai all taking turns to secure the top three spaces,” explained Mitchell.