The average price of a used car in December increased 4.3% from the previous year, according to the Auto Trader Retail Price Index.
Though the second half of 2019 was challenging for the industry, overall the year ended with like-for-like price growth increasing 0.6% compared with 2018.
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Demand for electric vehicles (EVs) increased 78% in December compared with the same month in 2018, measured by search behaviour on Auto Trader.
Supply for EVs almost tripled at 167%, as measured by the volume of stock advertised on Auto Trader.
There was also a similar trend for wider alternative fuelled vehicles (AFVs) which includes EVs. Demand increased 38% in December against the same month in 2018, and was met with an increase in supply of 74%.
Auto Trader reported despite supply growth outpacing demand in December, there is still an overall imbalance as EVs and AFVs share of search is still higher than its share of stock.
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By GlobalDataAFVs and EVs account for 3.4% and 0.5% of total stock on Auto Trader’s marketplace, but AFVs now account for 9% of all searches conducted by fuel type.
This is the highest share of search for AFVs on record – increasing from 8% in November 2019. The supply shortage has ensured prices remain high, with a like-for-like increase of 2.6% year-on-year for AFVs and 12.9% for EVs.
The difference in average asking prices between internal combustion engines (ICE) and AFVs also continues to grow, increasing by 11% year-on-year.
Petrol cars continue to be most popular, with 49% share of search (down from 50% in November) while diesels account for 42% (no change on November).
Ian Plummer, commercial director at Auto Trader, said: “Lower consumer confidence, global economic uncertainty, as well as the adjustment of market values all proved challenging for the industry in 2019. But despite the tough environment, the used car market has shown its resilience as transactions remain stable, and prices held up over the year. With greater certainty following the General Election result in December, we are optimistic for a more positive outlook for 2020.”
“There are some really positive trends to draw out in the market – continued strong performance of the premium segment, growing consumer interest in SUVs and the continuing rise of AFVs. AFVs and zero emission vehicles have grown in popularity over the last year and looking ahead, with the ongoing rhetoric around emissions and climate change, we expect this to continue on its upward trajectory. With 24 new EVs coming into the market in 2020, we may well see older models become more affordable in the used market soon,” he concluded.
