New figures suggest electric vehicles continue to experience steeper depreciation than petrol and diesel models in the used car market.
According to CAP HPI data, 24 of the 30 used cars that have lost the most value over the past 12 months are electric vehicles (EVs). Some one-year-old models have fallen by more than a third in value, equating to losses of around £12,000.
While this may concern current owners, it could also create opportunities for buyers looking to purchase a used EV at a lower price.
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Why are used EV prices falling?
The main reason behind falling used EV values is a simple imbalance between supply and demand.
Large numbers of electric vehicles are now entering the used market as lease agreements end, while consumer demand has not increased at the same pace.
Industry analysts also point to several additional factors, including:
- Increased availability of newer EV models.
- Falling prices of brand-new electric cars.
- Rapid improvements in battery technology.
- Ongoing concerns about charging infrastructure among some buyers.
As a result, many used EVs have experienced faster depreciation than equivalent petrol or diesel vehicles.
Which used electric cars have lost the most value?
Some of the biggest depreciation figures have been recorded by well-known electric models.
Among the largest value declines over the past year are:
- Jaguar I-Pace – down approximately 21.8%.
- Volkswagen ID.3 – down around 17.2%.
- Tesla Model 3 – down approximately 17.1%.
These figures highlight just how quickly values can change within the rapidly evolving electric vehicle market.
Is it bad news if you already own an EV?
If you already own an electric vehicle, falling resale values may affect how much your car is worth when it comes time to sell or part exchange.
However, it’s important to remember that:
- All vehicles depreciate.
- Electric vehicles remain relatively new to the used market.
- As demand grows over time, depreciation may begin to stabilise.
Many industry experts continue to believe that demand for used EVs will increase as more drivers become comfortable with electric motoring and charging infrastructure continues to improve.
Why falling prices could benefit buyers
Lower used prices can make electric vehicles far more accessible.
For buyers considering making the switch to electric, current market conditions mean:
- Better value for money.
- Higher-specification vehicles available at lower prices.
- Lower running costs compared with many petrol and diesel cars.
- Access to modern technology at reduced purchase prices.
Although depreciation may concern existing owners, it creates attractive buying opportunities for those entering the EV market.
Should you buy a used electric car?
Whether a used EV is right for you depends on your individual circumstances.
A used electric car could be a good option if:
- You have access to home charging.
- Your daily mileage comfortably fits within the vehicle’s range.
- You’re looking to reduce fuel and servicing costs.
- You plan to keep the vehicle for several years rather than selling it quickly.
As always, it’s worth checking battery health, service history and warranty cover before buying any used electric vehicle.
You might be wondering What’s it Like to Live With an Electric Car? before you decide on making the switch, which is completely understandable. It’s such a big deal, such a big change, it’s no wonder you might need to give it some thought.
Final thoughts
Used electric vehicle values have fallen significantly over the past year, largely because supply is currently outpacing demand.
While this may disappoint current owners, buyers could benefit from some of the best value used EV prices seen in recent years.
As electric vehicle adoption continues to grow and infrastructure improves, market conditions are likely to continue evolving.
If you’re eager to learn more about the market, you might be interested to know what Kia is doing as they’ve decided to add new hybrid models!
Wondering how much your car is worth?
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Jamjar helps you secure a competitive price while saving time and effort. You can retrieve a free online valuation in just seconds thanks to our online valuation tool.