With used car prices rising across the world, the price gap between electric vehicles and their petrol counterparts is fast shrinking.

Here at Datium Insights we look into current market dynamics that will help transition the world towards greener vehicles.

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Used Car Prices Rising Globally

As the COVID pandemic subsides in large parts of the world, nations are grappling with rising prices and inflation across their economies.

Cars have not escaped this effect, with used car prices in particular rising dramatically since the onset of COVID.

In the Australia, prices have risen approximately 50% since the beginning of 2020. The UK has similar increases, to the tune of 40%. While the US has seen prices rise over 50%.

A number of factors have driven used car prices higher, but the primary cause is shortage of new car stock.

Car manufacturers have faced numerous challenges in the past 2 years, resulting in historic declines in car production.

Aside from China, most manufacturing nations have seen 10-40% falls in production levels, which they are yet to recover from.

Based on current forecasts, production levels are expected to remain below pre-COVID levels for the next 12-24 months.

Consequently, new car sales will likely struggle to recover to previous levels, causing used car prices to remain elevated for the near term,

Price Parity

Along with used car prices, new car prices are also seeing increases across the board.

With demand for new cars exceeding supply, discounts on new cars have largely evaporated.

On top of this, car manufacturers have gradually increased new car prices via model year releases for their vehicle range.

When it comes to EV’s, one of the main barriers has been the price point required for consumers to purchase one.

EV manufacturers have invested heavily on technology to bring down entry prices for consumers, with a number of brands now offering EV models that are on par with petrol equivalents.

With pricing for new and used internal combustion vehicles seeing historic rises, consumers are increasingly finding the price gap with EV’s to be negligible.

Electric Vehicle Growth

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USA

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UK

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Global Sales

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Australia