Electric vehicles have become the thrifty choice for savvy car shoppers. According to recent data from HPI, the average retail prices of EVs are now cheaper than their petrol and diesel counterparts by around 8.5 per cent at three years old, soaring to a staggering 14 per cent at four years.
New EVs have long been the priciest option on the lot, but the tides have turned for the second-hand market. Used EV values have taken a nosedive over the past two years, presenting an irresistible opportunity for budget-conscious motorists. On average, used EVs at the same age and mileage have seen their values slashed in half since September 2022. Yes, you read that right – half!
Luxury models like the Jaguar i-Pace, Mercedes-Benz EQC, and Tesla Model X are now within reach for more buyers, with prices dropping by over £20,000 since the summer of 2022. And if you’ve been eyeing a Porsche Taycan, it’s your lucky day. These speed demons have seen price drops of up to £40,000, transforming them from a distant dream to a plausible purchase.
UK's used car market:
“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. The fundamental consideration is can the vehicle be charged. If charging the car at home or nearby then EV ownership is possible. Homeowners with off-street parking will almost certainly fall into this category because there is nothing to prevent them from installing a domestic charge point and topping up the battery overnight. It’s also the cheapest way to charge an EV,” Chris Plumb, EV specialist at HPI, commented.
The trend isn't just confined to luxury models. EVs across the board are becoming more accessible. In May 2024, a whopping 17.6 per cent of all new car registrations were electric, translating to 26,031 new EVs hitting the roads. But the used market is where the real action is. Sales of used electric cars skyrocketed by 71 per cent in the first quarter of 2024 compared to the same period last year. Over 41,500 pure electric cars found new homes in those three months alone.
Source: HPI