Trade demand for alternatively fuelled vehicles (AFVs) remains robust according to Dealer Auction’s EV Performance Review (EVPR)
Data from Dealer Auction’s EV Performance Review (EVPR) reveals a comparatively strong performance for alternatively fuelled vehicles (AFVs) on the trade-to-trade platform in September 2024, with a 13% increase in vehicles sold and conversion rate of approximately 60% – a slight improvement over the previous month.
Although the average sold price (£14,342) and retail margin (£2,740) dipped slightly month-on-month, down by 2.6% and 7.6% respectively, trade demand remains robust with the selling price around £700 higher than the first quarter of the year. This is also reflected in a 4.5% increase in ad views and a 13.5% rise in bids, indicating growing interest in the market.
The average age holds steady at 4.1 years, significantly younger than the start of the year but consistent with recent months. Meanwhile, average mileage continues to go down, both compared to last month and the same period last year, now just under 38,000 miles – around 2,000 miles less than the first quarter of 2024. This suggests, on average, AFVs are covering 9,500 miles annually before being traded in.
Dealer Auction’s Marketplace Director, Kieran TeeBoon, explains: “The growth in alternatively fuelled vehicle sales on our platform, particularly the dominance of hybrids, reflects the broader shift towards more sustainable vehicle options in the trade market. While price adjustments are a natural part of this evolving landscape, the rising interest, as seen in ad views and bids, signals strengthening confidence in and demand for the AFV market.”
He continues: “While the overall size of the AFV market is still low, dealers are increasingly recognising AFVs as a critical part of their portfolios. Many dealers are preparing for sustained growth in this segment as consumer interest continues to rise – driven by policy and manufacturer response. As demand continues to build, we anticipate seeing even greater momentum over the coming months.”
Hybrids continue to dominate the AFV market, occupying all 10 spots in the top 10 vehicles by volume sold, and 90% of the top 10 by CAP performance and average gross margin. The Nissan Leaf remains the only fully electric vehicle in the top tables, with an average days to sell at retail of over 50. While Tesla and Volvo made the charts over the summer, they’ve slipped back outside the top ten now autumn has kicked in.
Toyota stands out as a strong performer, claiming 40% of the top 10 spots for CAP performance and average assumed gross margin, and 50% of the top 10 for sales volume. Notably, despite missing the top 10 in sales volume, Lexus takes the lead in both CAP performance and gross margin, with the NX and RX models setting the benchmark.
Mitsubishi and Kia models, which are also in the top five by volume, are selling the quickest, with an average of 30 to 32 days to sell, followed closely by Toyota models like the RAV4, Auris, and C-HR, which average between 31 and 36 days.
TeeBoon comments: “Hybrids continue to outperform fully electric vehicles in the trade-to-trade market, perhaps due to continued consumer hesitation around EV infrastructure, charging accessibility, and battery life. However, as infrastructure expands and battery technology improves, we anticipate stronger growth in fully electric vehicles.”
He concludes: “We are committed to supporting our customers with the right tools and data to capitalise on this growing sector. We expect trade-to-trade AFV sales to rise even further as consumer demand continues to shift towards sustainable mobility options. It’s vital that dealers keep an eye on the data and trends given how quickly the market is moving. There are plenty of metrics to watch, and dealers need to use the right combination of data to determine the most effective vehicle mix for their forecourts.”
About Dealer Auction
Dealer Auction is the UK’s leading digital remarketing platform. We give buyers and sellers more choice, better insight and greater margins. Dealer Auction is an independent company, created through a joint venture between Cox Automotive and Auto Trader. For more information, visit www.dealerauction.co.uk.
Launched in May 2024, Dealer Auction’s EV Performance Review (EVPR) is a monthly feature that tracks the performance and trends of EV and Hybrid vehicles on the UK’s leading digital remarketing platform.
