Prices of electric cars continued to be volatile in March thanks to dramatic increases in levels of supply.

Data compiled exclusively for Car Dealer by Auto Trader showed that while overall electric car prices remained depressed in March, prices of some increased marginally month-on-month.

Tesla’s Model Y saw the largest month-on-month increase at 3.9 per cent, with the average asking price on the marketplace standing at £51,760.

Meanwhile, the Volvo XC40 Recharge saw the biggest price drop between February and March, with average prices slipping by 2.9 per cent to £46,275.

The full list of the top five largest price increases and top five price decreases is listed below.

While data showing prices of used Model Ys increased between February and March could be seen as good news, year-on-year figures paint a different picture.

The average asking price of the Tesla Model Y in March 2023 was still 12.3 per cent LOWER than prices seen in March 2022.

Moreover the Tesla Model 3, which ranks in third place in the top five list with prices rising by 2.3 per cent month-on-month, is still DOWN by a whopping 22.6 per cent compared to a year ago.

The data also shows NO electric car advertised on Auto Trader grew in price when March 2023 is compared to the same month last year.

The picture is ‘incredibly nuanced’, Auto Trader’s data and insights director Richard Walker told Car Dealer.

‘Although consumer demand for used electric cars was up 23 per cent year-on-year last month, the levels of supply increased 270 per cent,’ he said.

‘This massive surge in electric stock is having a profound impact on average used EV retail prices, falling around 15 per cent in March.

‘However, the market is incredibly nuanced. Those models that are seeing levels of supply grow at a faster rate than demand are experiencing a price adjustment, but there’s plenty of models where demand is as strong, if not stronger than supply, and as a result are offering good profit potential.’

Auto Trader’s latest Monthly Market Intelligence report reveals March was ‘a buyers’ market for EVs’ with more affordable used EVs emerging as a trend.

Of the circa 26,000 used EVs advertised on the marketplace in March, 24 per cent were priced up to £20,000 – up from seven per cent in August.

The price gap between ICE and EVs is decreasing too. Recently, Swansway boss Peter Smyth said he had told his buyers not to pay a premium for an electric car over an ICE vehicle. That came as dealers revealed they were holding off buying EVs.

In August 2022, the typical advertised price of a BMW 3 Series was £24,000 compared to the £45,000 advertised for a typical Tesla Model 3.

As of March, that gap had narrowed to just £4,000 (£27,000 for the 3 Series and £31,000 for the Tesla Model 3).

Top 5 largest price increases in March, month-on-month

1. Tesla Model Y

Average asking price: £51,760
Price impact month-month: 3.9%
Price impact year-on-year: -12.3%

2. Mercedes-Benz EQC

Average asking price: £56,897
Price impact month-month: 3.6%
Price impact year-on-year: -11.2%

3. MG5

Average asking price: £24,842
Price impact month-month: 2.5%
Price impact year-on-year: -2.4%

4. Tesla Model 3

Average asking price: £33,350
Price impact month-month: 2.3%
Price impact year-on-year: -22.6%

5. Smart ForFour

Average asking price: £15,304
Price impact month-month: 2.2%
Price impact year-on-year: -7.8%

Top 5 largest price decreases in March, month-on-month

5. DS 3 Crossback

Average asking price: £22,522
Price impact month-month: -1.6%
Price impact year-on-year: -14.8%

4. Volkswagen ID.3

Average asking price: £29,069
Price impact month-month: -1.7%
Price impact year-on-year: -21.8%

3. Hyundai Ioniq

Average asking price: £19,164
Price impact month-month: -1.8%
Price impact year-on-year: -20.7%

2. Lexus UX 300e

Average asking price: £35,532
Price impact month-month: -2.1%
Price impact year-on-year: -12.5%

1. Volvo XC40 Recharge

Average asking price: £46,275
Price impact month-month: -2.9%
Price impact year-on-year: -15.6%

• Join our breaking news WhatsApp group
• Have your say in the Car Dealer Power 2023 survey
• Sign up for daily email Car Dealer news bulletins
• Listen to the latest Car Dealer Podcast
• Read the latest digital issue of Car Dealer Magazine
• Create a Car Dealer account to access premium content