Rising petrol and diesel prices boost sales of used electric cars

Higher fuel prices caused by the war in Iran are affecting sales of used electric cars across Europe, which are rising by tens of percent. Reuters reports, citing data provided by dealers. These are the first signs that high fuel prices are putting consumers off buying vehicles with internal combustion engines.

The war in Iran, which broke out on 28 February, disrupted an important transport route carrying around 20% of global oil supplies. This has had a direct impact on prices at petrol stations. And while governments are trying to minimise the effects of rising prices and protect consumers, the increases have another side effect: boosting sales of used electric cars.

The segment reacts quickly to shifts in sentiment or sharp swings in fuel prices. Used cars can be up to 40% cheaper than new models and are available for immediate collection, unlike new vehicles, which often take months to arrive.

"Given the lead time involved in buying a vehicle, we expect this dynamic to continue as the market fully absorbs the impact of recent global events," said Alastair Campbell, vice president of growth at UK automotive data company Marketcheck.

A rapid increase

French online used-car retailer Aramisauto said the share of its electric car sales nearly doubled between the week beginning 16 February and the week beginning 9 March, rising from 6.5% to 12.7%.

The company, majority-owned by carmaker Stellantis, saw a similar shift in 2022, when Russia invaded Ukraine and energy prices surged, said CEO Romain Boscher.

"Once the price goes above 2 euros (per litre of petrol), it leaves a lasting impression on people. We are seeing a significant increase in interest on our websites, which is translating into orders for electric and hybrid cars," Boscher said.

In Germany, mobile.de, the country’s largest online car marketplace, said the share of searches for electric cars on its website had tripled since the start of March, from 12% to 36%, while car dealers had received 66% more enquiries about used electric cars than in February.

A longer-term trend

Other platforms are also reporting an increase. “We are currently seeing an electric car boom in the used-car market,” said Terje Dahlgren, an analyst at Finn.no, Norway’s largest used-car marketplace, adding that electric cars had recently overtaken diesel models as the most popular powertrain on the platform.

Over the same three weeks, the share of petrol models at Aramisauto fell from 34% to 28%, while the share of diesel models dropped from 14% to 10%.

Dealers operating in Denmark, Norway, Sweden, Romania and Portugal have also reported an increase.

"Interest in electric cars was already growing before recent events. The instability appears to have accelerated a transition that was already underway," said OLX CEO Christian Gisy.

He pointed out that the war had boosted the secondary market for electric cars, which had been developing for some time thanks to a wider selection of used EVs in Europe. A broader range of models and the growing availability of battery condition certificates have helped address buyers’ concerns about used electric cars.

If fuel prices remain high in the US and Europe, new-car buyers are also expected to gravitate towards electric and hybrid vehicles, Reuters reports.