Used EVs now cheaper than second-hand petrol and diesel cars
The average retail price for EVs has fallen by 8.5 per cent in three years and 14 per cent in four years, according to data at vehicle valuation HPI.
Values of used EVs have fallen past those of second-hand internal combustion-engined vehicles on average.
That’s according to vehicle valuation specialist HPI, which says cars such as the Jaguar I-Pace and Mercedes EQC have lost almost as much as £20,000 versus their values in the summer of 2022.
Prices for a three-year-old I-Pace start at around £20,000, whereas a Mercedes EQC can be had for around £25,000 for a 2021 example.
In comparison, 2021 diesel Jaguar F-Paces are on the market for £25,000 to £35,000, while a three-year-old petrol-powered Mercedes GLE is priced at around £30,000 to £40,000, according to Auto Trader listings.
What’s more, the Porsche Taycan can be had for as little as £50,000. Two years ago, the same car would be worth around £90,000, meaning a depreciation of almost half its value. A petrol Porsche Panamera of a similar age is currently listed on Auto Trader for around £60,000 to £65,000 – a 20 per cent-plus increase.
HPI said depreciation hits a car the most in the first three years of its life, with EV prices falling by as much as 8.5 per cent compared with ICE vehicles over that period, rising to 14 per cent after four years.
Chris Plumb, EV specialist at HPI, said: “The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices.
“However, switching from traditional petrol and diesel motoring to electric isn’t a like-for-like swap, and certain factors should be taken into consideration before going ahead.”
When buying an EV, the factors that need to be considered are the installation of a wallbox at home – costing around £800 to £1,000 – as well as looking into a salary-sacrifice scheme, where an employee gives up some of their earnings for a new or used car. Not only that, but an EV may not be ideal for people who don’t have off-street charging or don’t live near any public charging points.
In July 2024, 18.5 per cent of all new car registrations were EVs, with 27,335 sold. Meanwhile, sales of used electric cars in the first quarter of this year stood at 41,505 – a 71 per cent year-on-year increase and generating a 2.6 per cent market share.
