Now is the Perfect Time to Buy a Used Electric Car as Prices Drop Below Combustion-Engined Vehicles
Values of used EVs have halved since September 2022, according to Cap HPI
There has never been a better time to purchase a used electric car, as they are currently much more affordable compared to traditional petrol or diesel vehicles.
Chris Plumb, an EV specialist at vehicle valuation firm Cap HPI, stated that some used electric car models “can’t get any cheaper.”
According to Cap HPI, the retail price of a three-year-old electric car is now 8.5% lower than that of an equivalent petrol or diesel vehicle. The price difference widens to 14% for four-year-old cars.
The firm also reported that the values of used EVs have dropped by 50% since September 2022, regardless of their age or mileage.
Plumb explained that this price decrease is a result of supply and demand. The popularity of EVs in the new car market during the pandemic has led to a surge in second-hand examples as these cars come off company fleets and finance agreements.
“Every month, we’re witnessing record-breaking volumes of EVs entering the market, which is not surprising considering the new car registrations from three or four years ago,” Plumb said.
He also attributed the decline in used EV prices to the incentives offered by manufacturers on new electric car purchases. The UK’s zero-emission vehicle mandate has further increased the pressure to boost sales volumes, making used EVs less appealing and depressing their values.
Plumb elaborated, “Discounts on new cars, favorable finance terms, and sometimes free chargers included as a package make the new offerings more attractive compared to nearly new or used options.”
He also noted that older and higher-mileage EVs tend to sell quickly due to their lower prices.
“EVs that are three or four years old and priced below £20,000 at retail, or below £18,000 in trade, are selling as quickly as petrol vehicles when we analyze retail advertisements,” Plumb explained. “However, the sub-12 months old EV market is more fragmented.”
In conclusion, Plumb stated, “There has never been a better time to buy an EV due to the new car discounts and the value for money that used options offer. Some of these vehicles cannot get any cheaper, and we may see them increase in value over time as consumer demand rises.”
