Profits surge for alternatively fuelled vehicles
Demand rose for alternatively fuelled vehicles (AFV) in October, with dealers selling more models for higher profits.
According to the latest figures from Dealer Auction’s EV Performance Review (EVPR), the average age of AFVs fell from 4.5 years in September to 3.8 years in October, while the average mileage dropped from 46,804 to 38,263 miles.
This compares to the platform’s overall average of 8.3 years and 70,634 miles, underscoring robust demand for newer, well-maintained AFVs.
Meanwhile, the average retail margin on the Dealer Auction platform rose to £2,953 in October, with bids rising to 5,332.
Setting the bar, the Volvo XC90 hybrid achieved an average margin of £6,696, the highest on record and its fifth consecutive month at number one, followed by the Lexus RX Hybrid (£4,149) and Toyota RAV4 Hybrid (£3,209), and the Suzuki Ignis Hybrid (£2,328).
Meanwhile, the Mitsubishi Outlander Hybrid emerged as the fastest-selling model in October, averaging just 26 days to sell.
Strong demand
Dealer Auction marketplace director Kieran TeeBoon said: “In a month of strong metrics, the age and mileage profiles stood out. Industry-wide demand for three to four-year-old hybrids and EVs is outpacing supply, reflecting the impact of the pandemic years.
“However, these ‘middle-aged’ EVs are the perfect mix of trade and consumer demand from an age, mileage and price perspective. The result is a competitive market and healthy margins for retailers.”
He concluded: “As attention turns to the Autumn Budget this month, dealers, companies and fleet managers will be watching closely. New EVs have made remarkable progress but uptake still trails behind mandated targets and the gap could widen due to proposed changes to Employee Car Ownership Schemes (ECOS).
“This could reshape fleet remarketing and the supply of younger vehicles in the used market, tightening competition for the most desirable stock. It will be interesting to see if any support is announced.”
