After three years, a used electric car in the UK is worth almost 10 per cent less than its petrol- or diesel-powered equivalent.
So it’s now possible to buy a used electric car for less than an ICE-powered machine that’s similar in age and mileage.
Data from Cap HPI shows that heavy depreciation makes a used EV cheaper at the point of sale than its ICE equivalent. And that’s before you consider its reduced running costs.
Cap HPI indicates that after three years the average electric car is around 8.5 per cent cheaper than its petrol or diesel counterpart. That figure rises to 14 per cent less when it’s four years old.
The reason for this is that EV technology is developing at a faster pace. Therefore, consumer confidence in older models is weaker. The value of most EVs typically halves over two years, meaning there are plenty of bargains to be had.
Prices vary depending on make and model. Those that are less expensive when new tend to lose value quicker. In the UK, a three-year-old 57,000km Vauxhall Corsa goes for around £10,000 for a petrol model and under £9000 for an electric. That’s despite the EV costing £6000 more at the outset.
It is somewhat brand dependent, however. The Hyundai Kona EV tends to hold its value as well as the mild hybrid equivalent. A BMW i7 retains more of its value than the equivalent plug-in hybrid 7 Series. However, both models suffer from high levels of depreciation.
The growing availability of second-hand electric models is driving demand for those wanting to make the switch. However, fears about battery condition and much higher insurance premiums are behind the depreciation. That will hold some back from buying. The higher insurance fees are also in part due to hard-to-source parts and a lack of technicians.
Another factor that puts people off second-hand EVs is a lack of cheap public charging for those without a driveway. The new Labour government says it will provide local authorities with more comprehensive guidance on where and how to install chargers. It will also, in all likelihood, reimplement the 2030 ban on the sale of new ICE power cars.
