New data shows that interest in second hand EVs is higher than it has ever been. Sales are soaring too as more people make the decision to switch. We want to have a closer look at this today, then if you need help starting a car broker service, you can come to us.
A wave of interest
Auto Trader reports that June was a very good month for used EVs. Searches on their site were up 70% year-on-year. Ever more interesting, the number of people searching specifically for vehicles between 3 and 5 years old were up 175%.
To put the situation into perspective, searches for petrol and diesel vehicles were up 9% year-on-year. That is far behind EVs. More crucially, the number of people searching for 3 to 5 year old petrol and diesel vehicles was down by 10.3%.
In addition, Auto Trader is reporting that EVs are now selling quicker. In June, popular 3-5 year old electric vehicles were shifting in just 22 days. That is 7 days faster than the average for the whole market (29 days). If you offer a car broker service, don’t be surprised to see more dealers now looking to source higher numbers of quality used EVs.
Price parity
One of the main reasons for second hand EVs finally taking off is the prices coming down. More people are aware that it is cheaper than ever now to make the switch if you choose a used model.
Overall, it is still more expensive to buy a brand new EV. On average it costs 33% more than buying an equivalent car with a combustion engine. However, EVs depreciate rapidly in the first 12 months. Some models can lose over 50% of their value in that time. After three years, the vehicles can have price parity. Some EV models actually become cheaper than their petrol or diesel counterparts.
The situation, and more people learning of the price parity after three years, means the second hand EV market has become more robust. Plus, there are additional incentives to think about too. For example, many manufacturers now offer longer warranties on batteries. In many cases you get 8 years or 100,000 miles. This can make it more compelling to buy a used EV that will still be within this period.
The perfect time to start a car broking service
With all signs showing that the second hand EV market is finally taking off, it could be the ideal time to get into broking. There will be a lot more work to do in the future for dealers to source vehicles to cater for demands. That is particularly true of popular EV models in that 3-5 year old window. So, brokers could step in and make a lot of money for their services.
If you are thinking of starting your own business, a car broker service could be the perfect choice. We can show you how to do it with our fantastic products. You can also learn more on our website or contact us directly.
