Alternative fuel vehicles set retail margin records
Alternative fuel vehicles achieved an average retail margin of £3,120 last year, according to Dealer Auction’s EV Performance Review (EVPR).
This figure represents an eight per cent increase on the average retail margin of £2,870 recorded by alternative fuel vehicles in 2024.
Meanwhile, AFV volumes on the platform also increased, rising from 5.6% of total sales in 2024 to 7.3% last year.
The data also found that the average age of sold AFVs was 2.5 years with average mileage of 26,262 miles. This compares to 4.3 years and 39,103 miles in 2024.
Strong margins
Dealer Auction marketplace director Kieran TeeBoon said: “Despite uncertainty surrounding EV tax changes and sale targets in the new EV sector, used EVs have continued to deliver strong margins and fast selling time in 2025. Demand is clearly concentrated around younger stock, giving dealers a profitable opportunity when vehicles are priced and positioned correctly.”
However, he has warned a review of the ZEV Mandate could be critical in ongoing sales. He said policy must align with market reality to support a more sustainable transition to electrification.
TeeBoon concluded:
“While the ZEV Mandate remains a challenge for the industry, real-world performance data shows that EVs are firmly established in the used market. As we move into 2026, flexibility in policy and a focus on consumer-led demand will be key to sustaining momentum and dealer confidence.”
