The latest data from Dealer Auction’s EV Performance Review highlights a significant shift in the used vehicle market, with electric vehicles (EVs) driving a 31.4% increase in the average gross margin for alternatively fuelled vehicles (AFVs) in November.
The average gross margin for AFVs rose to £3,664 ($4,672) from £2,819 in October indicating growing consumer demand for high-quality models.
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Dealer Auction marketplace director Kieran TeeBoon said: “The £800+ rise in average retail margins is significant. Consumer awareness of EVs is obviously crucial to making a profit, but that’s only part of the picture. Profit also comes from acquiring the right stock quickly to meet demand.”
November also saw a 7% month-on-month rise in the average sold price on Dealer Auction’s trade-to-trade platform, as well as a notable surge in bidding activity, which surpassed 5,000 bids.
The increase in margins suggests that buyers are willing to pay a premium for vehicles with high retail ratings and desirable specifications, the report said.
The profile of used AFVs continued to evolve, with vehicles becoming younger and carrying fewer miles.
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By GlobalDataThe average age of sold models dropped by 3.4%, reaching 3.4 years while mileage decreased slightly by 0.4% to 32,612 miles.
While the overall number of ad views for AFVs decreased by 16.4% last month, EVs saw a striking increase in visibility, with ad views more than doubling from 2,819 to 7,419.
In a major shake-up of Dealer Auction’s rankings, EVs claimed seven of the top ten spots for average gross margin and six of the top ten for volume sold.
Notable performers included the Volkswagen ID.3, which topped the volume chart for EVs and secured fifth place in the gross margin rankings.
The ID.3 was also one of the fastest-selling models, with an average sales time of just 25 days.
On the hybrid side, the Toyota Auris led the chart for CAP performance, with a ratio of 180.8%, while the Hyundai Tucson topped the volume rankings for hybrids.
The Lexus RX hybrid managed to maintain its position in the top ten for gross margin while the Audi e-tron claimed the top spot with a gross margin of £6,551.
TeeBoon added: “November marked a pivotal moment in the EV Performance Review, as electric vehicles surged ahead in key performance metrics. While hybrids have long reigned supreme, the latest data could signal a turning tide. As we head towards 2025, it’s clear that electrification is no longer a future ambition but fast becoming a present reality.”
Last month, Dealer Auction’s data revealed a younger and more profitable AFVs market in October 2024 with a rise in demand and trade prices.
