Why Now is the Best Time to Buy a Used Electric Car
With the increasing popularity of electric vehicles (EVs) in recent years, there has never been a better time to buy a used electric car. According to Chris Plumb, an EV specialist at vehicle valuation firm Cap HPI, used electric cars are now significantly more affordable than their combustion-engined counterparts. In fact, the retail price of a three-year-old electric car is 8.5% lower than that of an equivalent petrol or diesel car, and the gap widens to 14% for four-year-old cars.
One of the main reasons for this price decrease is the supply and demand dynamics in the market. During the pandemic, the share of EVs in the new car market soared, leading to a higher number of EVs coming off company fleets and finance agreements. As a result, the supply of second-hand EVs has increased, putting downward pressure on prices. Cap HPI reports that the values of used EVs have halved since September 2022, regardless of their age or mileage.
Furthermore, the incentives offered by manufacturers on new electric cars have also contributed to the decrease in used EV prices. The UK’s new zero-emission vehicle mandate has put pressure on manufacturers to boost sales volumes, leading to attractive discounts and finance terms for new EVs. This makes used EVs less appealing in comparison, further depressing their values. Plumb explains that the new car offerings sometimes include free chargers and more attractive finance terms, making them a better deal than nearly new or used EVs.
The lower prices of older and higher-mileage EVs have made them particularly attractive to buyers. Cap HPI found that EVs that are three or four years old and priced below £20,000 at retail can sell as quickly as petrol cars. Plumb states that these older EVs are comparable or even faster in terms of selling time compared to petrol cars. However, he notes that the market for EVs that are less than 12 months old is more fragmented and presents a challenge.
Looking ahead, Plumb believes that the value of used EVs may increase over time as consumer demand continues to rise. The affordability and value for money that used EVs offer, combined with the potential for future price increases, make now the perfect time to buy an EV. As more people recognize the benefits of electric vehicles and the demand continues to grow, the market for used EVs is likely to become even more robust.
In conclusion, the current market conditions have made it an ideal time to buy a used electric car. Lower prices, increased availability, and attractive incentives on new EVs have contributed to the affordability and value for money of used EVs. As the demand for EVs continues to rise, it is expected that the value of used EVs may even increase over time. So, if you’re considering buying an electric car, now is the time to take advantage of the favorable market conditions and make your purchase.