Manufacturers and dealers are dumping new EVs into the UK market and its hitting residual values of existing electric cars, according to trade sources.
Growth in electric vehicle pre-registration activity is presenting challenges for the used car sector, says the Vehicle Remarketing Association.
Data provided to the VRA by AutoTrader shows that because manufacturers are heavily incentivising new EVs, equivalent nearly new stock is becoming more difficult to sell quickly.
VRA board member Louis Maxwell explained, “The figures show that general pre-registration activity is now up by 23% year-on-year for 2025, based on stock with less than 100 miles. It’s quite a rise but still some way behind pre-pandemic levels.
“EVs account for around 23% of these, which is in line with their share of the new car market but they’re taking much longer to sell second-hand because manufacturers are heavily incentivising the purchase of brand new EVs to stimulate demand.
“While 3-5-year-old EVs are selling fastest in the market at 26 days, having reached a general point of price parity with petrol, pre-registered EVs are turning every 37 days, which is three days slower than petrol. It’s a big difference.”
He added that it was important for retailers to monitor supply, demand and pricing dynamics when taking on more pre-registered EV stock.
“Because pre-reg stock has been in short supply following the pandemic, it has tended to look like a good buy to dealers, but volumes are rising and, in some cases, such as EVs, is not finding buyers quickly.”
Louis added that the AutoTrader data also showed 3-5-year-old vehicles were seeing price rises and selling more quickly as the Covid period 2.5-million-unit production squeeze worked its way through the market.
“Supply of vehicles in this age range is 3% lower year-on-year and 28% below 2019 levels. As a result, their retail prices are rising quickly, up 1.4% compared to last year against an overall market fall of -0.6% so far in 2025.
“They’re also turning every 24 days on average, four days faster than in 2019. There is every sign of general short supply and dealers are finding it difficult to locate good quality stock in this part of the market.”
Louis concluded that, given the growing complexity and nuance in the used market, the need to follow and interrogate the data at a near forensic level had never been more important.
“There are plenty of opportunities out there, with segments of the market presenting solid margin potential, and utilising the data available is key to finding them.”
