High Fuel Prices Drive European Demand for Used Electric Vehicles

Surging fuel prices across Europe, particularly since the onset of the Ukraine conflict, are driving a significant increase in demand for used electric vehicles (EVs). Second-hand EVs are now increasingly seen as viable alternatives to internal combustion engine (ICE) cars, especially in commuter-heavy regions.

Leading online platforms report a dramatic rise in interest. On Mobile.de, Germany's largest platform, searches for used EVs have almost tripled since the beginning of the month, now accounting for a third of all vehicle searches. Dealerships are also experiencing a 66% increase in inquiries for used electric models compared to February. Burkhard Weller, President of the German Association of Automobile Dealers (VAD), notes that high fuel costs make used EVs an "attractive and cost-effective alternative" for many commuters.

Previously, used EVs struggled to find buyers. Concerns over limited range, potential battery degradation and costly replacements, and rapid technological advancements deterred consumers. However, this trend appears to be reversing. For instance, at Weller's BMW dealership group, used BMW EV sales increased to 13.6% of their total used car sales by mid-March.

Interest in Used EVs Rises Across Europe

This surge in interest extends beyond Germany. According to Amsterdam-based platform operator Olx, searches for EVs rose significantly in France (+50%), Romania (+40%), Portugal (+54%), and Poland (+39%). Olx CEO Christian Gisy highlighted that interest had been growing even before recent events.

Sales data further supports this. Marketcheck reports a "clear and sustained increase" in used EV sales in the UK since the conflict began. In France, online used car retailer Aramisauto saw the share of EV sales double to 12.7% in the week of March 9th. Aramisauto CEO Romain Boscher noted a similar effect in 2022 when energy prices first surged after the Russian invasion of Ukraine, stating, "Once petrol costs more than two euros per liter, it leaves a lasting impression on people."

Scandinavian markets, known for their advanced EV adoption, also report strong growth. Platforms belonging to Norway's Vend Group unanimously indicate a significant increase in sales. Terje Dahlgren of Finn.no remarked that the used EV market is "currently a goldmine." On the Norwegian website, EVs have now surpassed diesel vehicles in search volume, though Norway already boasts a high EV penetration, with ICE new car sales being negligible. Similar trends are observed in Sweden and Denmark, where platforms report a clear shift towards energy-saving alternatives, as stated by Blocket expert Marcin Stepman.

Stefan Reindl from the Institute for the Automotive Industry (IfA) in Germany, however, advises caution regarding overly optimistic projections for a sustained boom in the used EV market. He questions how long the current phase of high fuel prices will last. "If it continues like this in the coming months, it could lead to higher sales in the used car market. But at this point, it is still difficult to say," he concluded.