In today’s market, purchasing a used electric vehicle (EV) presents an unparalleled opportunity due to their lower prices compared to traditional combustion engine cars. Chris Plumb, an expert on electric vehicles from Cap HPI, emphasizes that the cost of used EVs has reached a point where it is unlikely to decrease further.
Cap HPI’s data reveals that the cost of a three-year-old electric car is currently 8.5% less than a similar petrol or diesel model, and for four-year-old EVs, the price difference extends to 14%. Since September 2022, the value of used EVs has dropped by half, regardless of their mileage or age.
The surge in availability of used EVs stems from the increased number of these vehicles entering the market as they come off corporate fleets and finance plans. This growing supply is setting new records each month, reflecting the high new car registrations from several years ago.
Plumb attributes the decrease in used EV prices partly to the attractive incentives provided by manufacturers for new electric cars. The UK’s mandate for zero-emission vehicles adds further pressure to enhance sales, making used EVs less appealing by comparison and thus lowering their market value.
He also points out that new car discounts, favorable finance options, and bundled perks like free chargers make new models more attractive compared to nearly-new or used EVs. Nonetheless, older, more affordable EVs often sell faster than newer models, with those priced below £20,000 retail performing comparably to petrol vehicles in terms of sales speed.
Plumb concludes that now is an exceptional time to purchase an EV, with current discounts and value-for-money offerings making used models a compelling choice. He predicts that as demand grows, the value of these vehicles could increase over time.