According to data from Cap Hpi, out of the 30 second-hand models that have seen the sharpest decline in value, 24 are EVs, says This Money. The hardest-hit example, which is just one year old, is now worth 36% less than it would have been 12 months ago, resulting in a financial loss of £12,000.
Is it bad news if you own an EV?
Well according to Derren Martin, Head of Valuations at Cap Hpi it is. He reckons that used battery electric vehicles continue to face pressure due to supply outweighing consumer demand.
‘This has been evident so far this year, as for the first quarter of 2024 values for EV’s at the benchmark profile of 3 years and 60,000 miles have reduced on average by 3.8 per cent, compared to petrol values that have increased by 3.6 per cent and diesel 2.6 per cent.’
Despite this decline, Derren remains optimistic about future EV demand, and reckons that EV demand ‘will rise’ in the future. He emphasized that now might be an excellent time for consumers to consider purchasing a used electric vehicle, given their exceptional value compared to internal combustion engine equivalents, according to This Money.
Which used cars have crashed in value?
The used EV market has experienced significant fluctuations in value recently.
Here are some of the biggest fallers in terms of value over the last 12 months for nearly-new EVs, according to This Money.
- Jaguar I-Pace: The battery-powered I-Pace has dropped by a massive 21.8% in the last 12 months.
- Volkswagen ID.3: Down 17.2%.
- Tesla Model 3: Down 17.1%.
These figures highlight the challenges faced by used EVs, including increased supply, cost considerations, and the complexity of EV ownership. However, despite these declines, EVs still offer compelling value propositions, especially when compared to their internal combustion engine counterparts. As the market evolves, we should monitor specific EV models’ performance in response to supply and demand dynamics, says Fleet World.
Is it bad news if you own an EV?
Owning an EV in light of their recent decline in value can be viewed from different angles.
For example, if we take a look at current EV owners. If you currently own an EV, the recent drop in value might concern you. Depreciation affects resale value, which could impact your financial position if you plan to sell or trade in your EV. According to Motorpoint, the biggest drop in EV value relative to fuel-powered cars is within the first 12 months.
However, perception plays a part too in EVs losing value. This may lead some EV owners to feel disheartened, but it’s important to remember that all vehicles depreciate over time, and EVs are no exception sadly.
Should you buy an EV?
Every cloud has a silver lining and all that, and it’s the same in this instance too. For potential buyers, this decline in EV prices presents an opportunity if you think about it. If you’re in the market for a used EV, now might be an excellent time to purchase one at a more affordable price!
As EV technology continues to evolve, newer models with improved features may attract buyers, potentially impacting older models’ values. So if you’re looking towards the future, older EV’s maybe less pricey and more up your street that some of the newer models.
Overall, while the recent value decline may concern current EV owners, it also presents opportunities for buyers. As the EV market evolves, staying informed about trends and making informed decisions is key!
