Running out of Power: Used Electric Cars Lose Value by One-Fifth, Plunging in Price by One-Quarter in a Year
By Piriyanga Thirunimalan
Updated: 08:03 BST, 23 September 2023
New data reveals that the prices of second-hand electric cars have dropped by nearly a quarter within a year, reflecting a decrease in consumer confidence. Dealers are concerned about the declining value of Electric Vehicles (EVs), with some risking selling at a loss if the market does not rebound.
Earlier this week, Rishi Sunak announced the postponement of the 2030 target for banning the sale of new petrol and diesel vehicles until 2035. The Prime Minister expressed concerns about imposing excessive costs on families, warning that it could undermine support for environmental conservation. Aligning with the European Union, this decision marks a victory for the Mail’s campaign to re-evaluate the 2030 deadline.
Mid-month figures for September, released by AutoTrader, the largest online car marketplace, demonstrate a 21.4% decline in the average price of used EVs, now standing at £32,463. Premium sector EVs, such as Tesla, BMW, Mini, and Mercedes-Benz, have experienced the greatest decline in value, with prices dropping by up to 24.1% compared to the previous year.
The data from The Times reveals that second-hand premium sector EVs reached their peak price of £51,704 in August of the previous year and have since plummeted by over £10,000 to £39,268.
Marc Palmer, the head of strategy and insights at AutoTrader, commented, “The used market will now experience slower growth. With fewer new EVs being registered and fewer used cars entering the market, it will take longer to transition the majority of motorists to second-hand EVs, especially among those who are skeptical. Many uncertainties remain.”
New figures released earlier this week also indicate an over 11% decline in sales of new zero-emission vehicles to individual buyers. Umesh Samani, chairman of the Independent Motor Dealers Association, representing more than 1,000 traders, expressed relief over the postponement of the ban on petrol and diesel cars, stating that it has provided “breathing space” for everyone. Samani added, “Dealers have been apprehensive about dealing with EVs due to their volatile nature. Many of our members have been burdened with EVs on their forecourts that they cannot sell, despite witnessing a monthly price decline of £2,000 to £3,000.”
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