Used EV prices almost halved as costs dramatically fall in ‘good news’ for UK drivers
Second-hand electric car prices have recorded massive drops with models now more affordable for drivers hoping to make the switch away from petrol and diesel.
Used electric car prices have dramatically fallen with valuations almost halved over the past 18 months, according to new analysis.
Data from Indicata UK’s latest Market Watch report shows the average three-year-old used EV is now 43.8 percent cheaper than at the start of 2023.
Figures revealed costs continue to fall by sizeable amounts every month with a further two percent drop recorded in June.
Analysis suggests electric vehicles are heading towards price parity with combustion petrol and diesel models which can only be good for consumers hoping to switch.
However, the massive drop in fees could have a major impact on the car industry with leasing companies particularly worried.
Dean Merritt, head of sales at Indicata UK stressed many would feel the “pain” of values dropping.
He explained: “Our latest used EV trends do not make enjoyable reading for leasing companies who have got used cars to sell at the end of customer contracts.
“Some are turning to secondary leasing for their younger lower mileage used EVs as a means of reducing the residual value pain, which also helps to reduce the chance of ex-fleet cars flooding the market.
“The good news is that consumer demand for used EVs continues to increase as prices get cheaper as they continue to find their feet in the used market. However, it remains a slower process than most would like.”
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Expensive upfront costs have often been touted as one of the biggest barriers to EV adoption.
A study from Anglia Ruskin University found that the price of electric vehicles was the main reason 50 percent of motorists were not making the switch.
A recent poll from Express.co.uk found lower price tags could encourage 27.2 percent of drivers to buy electric models, the highest of any individual factor.
Transport&Environment also found that expensive upfront costs were a top concern for 13 percent of people and a concern for a further 17 percent.
AutoTrader, the leading new and used car marketplace, revealed there had also been a rise in the number of second-hand EVs available to road users.
Rachael Jones, director of automotive finance at AutoTrader said: “There's been a 55 percent growth in vehicles listed on AutoTrader that are under one year old and under 100 miles on the clock, versus June last year.”
