Used electric vehicle values fall below ICE models
New data has revealed that many used electric vehicle values have fallen below their petrol and diesel equivalents.
HPI data has found that used three-year-old EVs are 8.5% cheaper than ICE models while those in the four-year category are 14% cheaper.
New EVs are typically more expensive than the closest petrol and diesel equivalents, but depreciation within the used EV market is continuing at pace – on average, values of used EVs for cars at the same age and mileage point have halved in value since September 2022.
This is driving demand among private buyers, with sales of used electric cars 71% higher in the first quarter of 2024 than in the same period last year, and sales of used hybrids also increasing significantly.
In total, more than 41,500 pure electric cars were sold on the used market in the first quarter of this year alone.
Used electric vehicle values
Chris Plumb, EV specialist at HPI, said: “The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices. However, switching from traditional petrol and diesel motoring to electric isn’t a like-for-like swap, and certain factors should be taken into consideration before going ahead.
“The fundamental consideration is, can the vehicle be charged? If charging the car at home or nearby, then EV ownership is possible. Homeowners with off-street parking will almost certainly fall into this category because there is nothing to prevent them from installing a domestic charge point and topping up the battery overnight. It’s also the cheapest way to charge an EV.
“If on-street, public charge points are close by or at work, then there is still every chance an EV will suit. If home, street or work-based charging are not readily available, then an EV may not be a realistic choice just yet.”
He said that other factors to consider when buying a used EV include the cost of installing a home charger, which is between £800-£1,000, whether a salary sacrifice scheme is an option, and whether there is any concerning history against the vehicle.
