Used car prices in sharp decline with reductions for certain vehicles ‘likely to continue’
Second-hand electric vehicles have recorded sizeable price drops with further discounts expected into 2024, warns motoring specialists.
Used electric car costs are on the way down with price reductions “likely to continue”, according to experts at the AA.
James Hosking, Director of AA Cars stressed that a “surge in the supply” of second-hand electric models had seen prices start to decline.
The rapid depreciation is probably down to first-time EV buyers deciding to sell their vehicle a few years into ownership.
However, James warned that electric models are still likely to be more expensive than many petrol and diesel equivalents despite the drastic savings.
He explained: “There’s especially good news for eco-conscious drivers or those thinking of going green for the first time - a surge in the supply of used EVs and hybrids is boosting choice and driving down prices.
“Although upfront costs on an EV remain higher than they are on a conventionally-fuelled car, the steady softening of used EV and hybrid prices is likely to continue as more hit the market."
Data from AA Cars has revealed which three-year-old models had declined the most over the course of the last 12 months.
The Volvo XC40 comes with the option of an electric powertrain and hit third on the leaderboard with a staggering 31.8 percent taken off valuations since 2023.
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The decline means owners searching for Volvo XC40 will likely pay just £25,796 compared to £37,797 last year in a massive £12,000 reduction.
The Kia Niro can also be secured as an EV powertrain with AA data showing a massive 29.5 percent decline in the past year.
A recent report from the AA found that prices of used electric and hybrid vehicles have dropped by 12 percent over the last year on average.
It showed that prices of used EVs had fallen from an average charge of £22,158 to £19,548.
Meanwhile, experts at the Electric Car Scheme found some electric models depreciated by more than £7,000 in six months.
The Hyundai Kona Electric was valued at £22,238 last January but cost just £14,794 by last June.
The Peugeot e-208 was down was down a staggering £6,275 with Nissan Leaf models lower by around £6,188.
She stressed: “Demand was just outstripping supply, people couldn’t make them quick enough. Now we are seeing more cars coming through so the lead times have come down considerably.
"We are starting to see some second-hand cars come out now as well. They are coming off lease from a few years ago. That is starting to create a second-hand market which is exciting.”
