The Rise of Alternative Fuel Vehicles in the Used Car Market: A Look at October’s Trends

The shift towards alternative fuel vehicles in the used car market is undeniable, with hybrids and electric vehicles (EVs) gaining significant traction in recent months. According to Motors’ Market View, hybrids and EVs accounted for 14% of all used car listings in October, a notable increase from just 10% a year ago. This trend is indicative of a growing interest in eco-friendly options among car buyers.

One standout performer in this market is the MG3 hybrid, which has emerged as the fastest-selling used car, spending an average of just eight days on dealer forecourts. This highlights the increasing popularity of hybrids among consumers.

Notably, there has been a significant increase in the availability of younger hybrid models, with sales of vehicles under two years old rising by 52% year-on-year. This suggests that buyers are becoming more open to considering slightly older models as they seek to balance price with eco-credentials.

Despite the rise in hybrids and EVs, petrol vehicles continue to dominate the used car market, representing over half (54%) of all listings on Motors. However, the growth in alternative fuel vehicles has primarily come at the expense of diesel models, which have seen a decrease from 35% to 32% over the past year.

In terms of pricing, the average cost of a used car in October rose by 2% to £17,899, indicating a stable market despite fluctuations in supply and demand. The sales cycle remains consistent, with dealers averaging 30 days to sell a vehicle. Franchised dealers are performing particularly well, achieving sales in just 20 days, while car supermarkets and independent dealers took slightly longer at 22 and 50 days, respectively.

Geographically, there are disparities in pricing across the UK, with Wales offering the most affordable used cars at an average price of £14,638. In contrast, London remains the priciest location for used car purchases, with average prices rising by 8% year-on-year to £24,157.

Overall, October’s Market View reflects a stable used car market, with healthy demand and a growing interest in alternative fuel vehicles. As Lucy Tugby, marketing director of Motors, notes, the availability of younger hybrid models is resonating with buyers, making hybrid options more appealing than ever. With prices remaining relatively consistent and dealers achieving faster sales, the future looks bright for the used car market.