Second-hand electric vehicle prices are dropping!
Until recently, the second-hand market for used electric vehicles was slim pickings.
With electric vehicles - on the whole - costing initially more than their petrol/diesel counterpart, and with businesses not yet trading in their older EV fleets for newer models, the price tag for second-hand EVs was not far off its original price.
However, with over 624,000 fully electric vehicles sold in the UK since 2018 (16.8 million globally!), supply is finally catching up with demand, and prices are dropping - great news for anyone looking to buy a second-hand electric car.
So, which second-hand models are seeing their prices drop? And by how much?
Let’s get plugged in...
What’s causing the price drop in second-hand electric vehicles?
There are a few reasons why the price of used electric vehicles in the UK is falling - from a rise in the stock of second-hand cars to a more general rise in demand/interest in purchasing electric vehicles. Let’s dig into these reasons now:
Rise in second-hand electric vehicle stock
As the electric vehicle market is still relatively young, it’s only recently that EV drivers are considering selling their current model to upgrade to a newer version. In the UK, the average car owner keeps their vehicle for around 6 years before looking to upgrade, which means early-ish adopters of electric vehicles will only now be looking to sell up and buy a new car. In addition to this - did you know that vehicles for commercial/fleet use make up over 13% of the UK’s vehicle registrations? With more and more companies and fleets going electric (such as Tesco, LEVC, DPD, etc.) and with over a third of fleet cars making it to auction, it shouldn’t be too long before the second-hand electric vehicle market is ripe for the picking
A higher initial price means a used electric vehicle price tag has further to fall
For the past few years, electric vehicles have maintained a steady value (and not much loss) due to: issues in the global supply chain affecting raw materials production, high manufacturing costs, shipping delays, and inefficient assembly processes.
However, with the global supply chain picking up pace, the ability to order (and pre-order) the latest electric vehicle models is on the up. This means that those EV drivers who have been patiently waiting are now taking the plunge to upgrade, putting their current electric vehicles up for sale.
If you’d like to learn more about the supply chain for an electric vehicle battery, check out our blog: The Life of an EV Battery.
Demand for electric vehicles increases year on year - meaning prices have to get competitive
As mentioned in our intro, over 624,000 fully electric vehicles have been sold in the UK since 2018 (270,000 of those being in 2022 alone!). By April 2023, sales in fully electric vehicles made up 15.4% of the market share - this is fantastic growth! Year after year, sales of electric vehicles in the UK have risen, and with the market projected to grow by 8.61% in the next five years (and the impending 2030 ban on new petrol and diesel vehicles) prices for electric vehicles are becoming competitive - and this isn’t just restricted to second-hand electric vehicles, new EVs are also seeing a price reduction.
Which second-hand electric vehicles are seeing the most significant price drop?
Although compared to the second-hand petrol/diesel market, the used electric vehicle market is still more expensive - the cost of running electric vehicles is significantly cheaper. And with the second-hand EV market taking off, we’ve rounded up the top 5 electric vehicles which have seen the greatest drop in price over the past twelve months on the UK’s second-hand market:
(Figures accurate July 2023)
Number 5 = Audi e-tron (2018 - 2023) - 28% cheaper
In 2022, a three-year-old Audi e-tron with 30,000 miles on the clock was on the market for around £44,000, this year, the same vehicle is being sold for around the £31,000 mark.
Number 4 = Nissan Leaf (2017 - present) - 28.5% cheaper
In 2022, a three-year-old Nissan Leaf with 30,000 miles on the clock was on the market for around £20,000, this year, the same vehicle is being sold for around the £14,000 mark.
Number 3 = Renault Zoe (2019 - present) - 28.5% cheaper
In 2022, a three-year-old Renault Zoe with 30,000 miles on the clock was on the market for around £16,300, this year, the same vehicle is being sold for around the £11,500 mark.
Number 2 = Jaguar I-Pace (2018 - present) - 28.7% cheaper
In 2022, a three-year-old Jaguar I-Pace with 30,000 miles on the clock was on the market for around £43,000, this year, the same vehicle is being sold for around the £30,000 mark.
Number 1 = Tesla Model S (2014 - 2021) - 31% cheaper
In 2022, a three-year Tesla Model S with 30,000 miles on the clock was on the market for around £63,000, this year, the same vehicle is being sold for around the £43,000 mark.
Further reading on the price of used electric vehicles:
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