Forget about price parity, used electric cars are now cheaper to buy than equivalent petrol and diesel models, Cap HPI has revealed. Average values for used EVs are now falling behind by around 8.5% at three years, rising to 14% at four years.
Despite carmakers offering increasingly competitive finance packages for New EVs, they are still considerably more expensive than the closest petrol and diesel equivalents in cash terms. However, used electric car prices have fallen sharply in the past two years to provide drivers searching for a used EV with a potential bargain.
Cap HPI data reveals that values of used electrics for cars at the same age and mileage point have halved in value since September 2022. For premium EVs such as the Jaguar I-Pace, Mercedes-Benz EQC and Tesla Model X, the fall has been steep, and this can equate to well over £20,000 less than in the summer of 2022. For the more expensive Porsche Taycan that can be up to £40,000 less, making previously unobtainable cars a real option for more consumers.
Why are used EV prices falling so dramatically?
Supply outstrips demand, used EV prices fall
A scan of the Parkers Cars for Sale section reveals the situation in full. Where there are cars with direct petrol and EV counterparts, comparisons are easy to make. Used delivery mileage Vauxhall Corsas and Corsa Electrics (also known as pre-registrations) go for the same money now (see above). At the time of writing, the cheapest used Porsche Taycan for sale on offer is £42,000 against a £90k-plus new cash price.
But the straight pricing is not the only issue to be aware of when buying a used electric car. Other factors to consider when buying a used EV include charger costs. Installing a wallbox is worth adding to the overall budget for the car. It costs around £800-£1,000 for a home charge point, although energy suppliers are increasingly offering EV-specific tariffs, which sometimes include a home charger bundled with the package.
In contrast, aside from fuelling costs which benefit EVs, some employers also offer salary sacrifice schemes, in which employees can give up a portion of their earnings in exchange for a new or a used car. These schemes sometimes include a wallbox as an added incentive to switch to a zero-emissions car
Used electric car sales are booming
According to Cap HPI, in May 2024, 17.6% of all new car registrations were electric cars, with 26,031 new electric cars registered. Sales of used electric cars were 71% higher in the first quarter of 2024 than in the same period last year, and sales of used hybrids are also increasing significantly. More than 41,500 pure electric cars were sold on the used market in the first quarter of this year alone.
Chris Plumb, EV specialist at Cap HPI, who said when launching its new guide to buying their first EV, said: ‘The growing availability of used electric cars is driving demand as drivers want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices. The fundamental consideration is can the vehicle be charged. If charging the car at home or nearby then EV ownership is possible.’
He added: ‘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.’
Concerns over battery degradation
According to a June 2024 poll conducted by the Green Finance Institute, 62% of drivers polled who wouldn’t buy a used EV cited battery lifespan as a key concern. Anyone who’s ever owned an ageing smartphone will resonate with the pain a depleted battery life offers.
The truth is that serious battery degradation is rare for EVs, especially examples that are only a few years old. All EV manufacturers offer stand-alone battery warranties against degradation and failure, with the industry average being eight years or 100,000 miles.
Will EV prices fall in 2025?
Nothing is concrete, but we can speculate that EVs won’t slow the depreciation curve soon. Figures from The Society of Motor Manufacturers and Traders (SMMT) show a 10.5% uptick in EV registrations from August 2023 to 2024, meaning there’ll be even more used examples to choose from in the future.
There’s also the ever-expanding choice of EVs, including tempting Chinese offerings, so buyers will have more affordable routes into EV ownership.
This means used EVs will compete against increasingly affordable new models, and there will be more used examples available than ever before. To remain competitive, prices will more than likely need to come down.
Is now the time to buy an electric car?
It’s good news for anyone in the market for a used electric car. But buying a used electric car is not straightforward. Beyond the usual car checks, it’s all about whether it fits into your lifestyle, as detailed above. But if you’re able to get all those boxes ticked, then the used car market is shaping up to play into your favour.
The used car choices no longer are limited to short-range, slow first-generation models, with Jaguar I-Paces and Audi E-Trons, especially, falling to a fraction to their new cash prices. Newer, premium EVs are continuing to be exellent bargains used. We found examples of the BMW iX and Audi E-Tron GT for practically half their original values. The question remains whether this depreciation curve will continue going forwards, or whether prices have now settled to a level just below their petrol alternatives.
This excellent value for buyers isn’t exclusive to premium models either. Taking the base price of the UK’s best-selling car, the £25,800 Ford Puma, we’ve seen what used fully electric bargains there are on sale. In our quick hunt, we found a previous Parkers Car of The Year winner, and even pre-registered new cars with minuscule mileages and handsome discounts:
• Skoda Enyaq – £24,600 for a 23 plate with 1490 miles
• MG MG4 XPower – £24,995 for a 23 plate with 3896 miles
• Renault Megane E-Tech – £24,989 for a 73 plate with 3097 miles
• Vauxhall Astra Electric – £24,998 for a 24 plate with 25 miles
• Jeep Avenger – £24,998 for a 24 plate with 10 miles
Best of all, this is just a small slice of what’s available on the used market. All the cars we’ve listed above have lost a huge chunk of value in a relatively short time, but they will be reliable choices. The worst of the depreciation should already have hit too.
My view as the editor of Parkers is that the market has spoken, and values are settling at their natural levels. That’s good news if you’re buying one now, but this new reality is going to shape the next generation of finance deals for new car buyers – it will be interesting to see how things pan out in a market that’s proving a little resistant to EVs.
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Keith Adams is the Editor of Parkers. During his career he has been the editor of Classic Car Weekly, Modern Classics and Honest John Classics, as well as writing for CAR magazine, Practical Classics, Octane, Autocar and The Independent among others. Keith lives in rural Lancashire and enjoys buying and selling cars as well as reading and writing about them.
