Alternative fuel cars show the biggest year-on-year price increase
Auto Trader’s retail price index has revealed that there’s been a strong gain in the market for alternative fuel cars, currently showing the highest year-on-year growth compared with petrol and diesel models.
The retail price index shows tracks the market value of all cars advertised by retailers on Autotrader.co.uk. It shows the changes driven by supply and demand for different makes, models, segments and fuel types.
The data for November 2015 has revealed there are 3,000 more alternative fuel cars in the market compared to 2014, a 62% increase, which brings the market share for alternative fuel cars up to 1.12% from 0.76%.
The average price for alternative fuel vehicles has risen by 6.5% due to increasing demand and marketplace mix. Diesel cars were the only fuel type to decrease in value with buyers paying £124 less on average for a car. This is down to the increased market share and, for the first time, brings average diesel prices below petrol.
Karolina Edwards-Smajda, Auto Trader Retailer and Consumer Products Director, said: “One of the most interesting observations for the year-on-year November period has been the rise in market share of alternative fuel vehicles, giving the industry more insight into the UK’s growing appetite for electric and hybrid vehicles.
There’s been a big drive from most of the manufacturers to launch desirable alternative fuel cars which is set to grow further, only recently Ford announced its plans for large-scale investment into this area.”
This latest data also reveals two distinct trends within the alternative fuel vehicle segment. Hybrid cars are depreciating the least initially compared to other fuel types, but trends are showing signs of depreciation eventually levelling out at rates similar to petrol and diesel models.
Edwards-Smajda, added: “Despite the positive outlook for hybrid car depreciation, we are seeing very different trends with electric vehicles, as the latest data shows electric cars depreciating at much higher rates – especially within the first two years – losing value much quicker than hybrid, petrol and diesel cars.”