Carwow provide and demand information tells us that there’s one conspicuous portion of the used automotive market the place there’s a sizeable hole between shopper curiosity and what retailers are providing: used electrical autos (EVs).
Regardless of detrimental press in some media shops round shopper urge for food, the truth is that EV consideration amongst consumers is pretty excessive, with 41% of individuals surveyed by Carwow in September believing it’s probably that their subsequent automotive can be a plug-in hybrid or EV.
Trying particularly at automotive critiques, Carwow’s high two in 2023 have been each EVs, and that theme has continued by means of this yr, with eight of the highest 10 most seen critiques being on EVs – together with our Automotive of the Yr, the Volvo EX30, the Audi This autumn e-tron and Tesla Mannequin Y.
Nonetheless, this enhance in demand for used EVs isn’t being met with a rise in provide on forecourts and retailers reticent about used EVs may very well be shunning a ready-made revenue alternative.
In a current ballot of shops actively bidding in Carwow auctions, 78% stated they have been at the moment selecting to not purchase used EVs; the first justification (cited by 30% of respondents) being a ‘lack of demand’. Simply over 1 / 4 (26%) of these questioned stated they don’t seem to be stocking used EVs as a result of ‘market volatility’, whereas 20% stated it’s as a result of they merely had little interest in promoting EVs. Those that are stocking used EVs say they’re doing so in low numbers to guard revenue if demand stalls.
Nonetheless, strengthening retail demand for used EVs in Q2 led to a pointy rise in conversion charges at Carwow’s commerce auctions. Certainly, in September, conversion charges at public sale for EVs exceeded these of ICE automobiles by three proportion factors, having lagged behind by as much as 20 proportion factors again in April.
In This autumn, the case for including used EVs to forecourts is turning into extra compelling by the day. Retailers who’re responding to shopper demand and promoting used EVs in bigger volumes are reporting increased margins and quicker inventory flip. The common inventory flip for a used EV is 46 days, which is 9 days fewer than a typical used petrol mannequin (55-day common).
Moreover, EVs now comprise a rising proportion of the certified, higher-intent enquiries that we direct to our seller companions. In August, it was at 20.7% of all chargeable Carwow enquiries, which is the very best it has been for the final 12 months.
Used EVs undoubtedly provide potential revenue alternative for sellers, it’s simply whether or not extra are prepared to make the leap to capitalise on them.
Sally Foote is chief business officer – Promote My Automotive, Carwow
