Dealers see surge in AFV trade as demand for EVs and hybrids grows

Trade-to-trade sales on alternatively fuelled vehicles (AFVs) jumped by 64.9% in 2024 compared with 2023.

The digital marketplace saw 51,259 bids received on AFVs and 204,058 ad views, delivering year-on-year increases of 25.83% and 16.6% respectively.

Dealer Auction said that although AFVs still represent a small proportion of the market – 5.6% on the Dealer Auction platform – the data illustrates that more and more dealers are keen to tap into the profit potential of these models.

Dealer Auction marketplace director, Kieran TeeBoon, said: “The EV Performance Review continues to yield intriguing insights about an evolving used market. The data shows strong stats for used AFVs in 2024 versus those traded between dealers 12 months ago.

“The remarkable 64.9% jump in trade-to-trade AFV sales underscores the shift in consumer demand toward hybrid and electric vehicles, showing the opportunities for dealers in 2025. It’s an exciting time for the industry, and we’re proud to be at the forefront of facilitating this transition through our digital platform.”

The age and mileage of the AFVs increased slightly in 2024: the average age increased by 3% to 4.3 years old, while the average mileage increased by 11% to 38,103. Although, notably in December 2024, the average age fell to 3.1 years, showing the importance of looking at the most recent data as well as broader trends.

While the average retail margin for AFVs remained broadly unchanged from 2023 (falling by 2.2% to £2,870), this is indicative of the wider UK cost of living crisis and the impact on the automotive industry as a whole.

2024 top 10: Average assumed gross margin