Second-hand electric vehicle values continue to fall as demand for used battery-powered cars falters, according to a new study.
Industry figures show new electric car registrations are up nearly 90 per cent compared with 2022, while sales of second-hand models have also risen 82 per cent annually.
However, the latest data from AA Cars suggest that interest in EVs is cooling. In the first six months of 2022, 11.3 per cent of UK-wide searches by fuel type on the AA Cars site were for battery vehicles.
This has fallen to one in 20 searches over the same period this year.
AA Cars says demand for used EVs is ‘cooling’ as it sees half the volume of searches for battery models compared to a year ago. But which models have lost most value in the second quarter of the year?
And with shrinking demand comes falling prices, with the online vehicle marketplace revealing which battery models have lost the most value on average in the previous three months.
While demand for used EVs across Britain is declining, London is the exception to the rule, AA cars says.
And it believes the expansion of London’s Ultra Low Emission Zone (ULEZ) this week is the reason for this.
From Tuesday 29 August, the charging zone boundary grew more than four times in size to cover the capital’s outer boroughs.
Those with non-compliant older petrol and diesel cars now face a £12.50 daily charge each time they enter the zone.
With London residents frantically looking to offload their older motors and replace them with greener replacements, there is a greater appetite for EVs from those living in the capital, the car sales site claims.
While just 5 per cent of all searches on its platform this year are for battery cars, for those looking in London it rises to 10 per cent.
Not only is that double the UK average but is also a slight increase in demand on the same time last year, when EVs made up 9.1 per cent of all searches in the capital.
While demand for used EVs across Britain is declining, London is the exception to the rule – AA Cars says this is partly due to the expansion of the ULEZ, which took place earlier this week
Mark Oakley, director of AA Cars, said there are definite signs that interest in EVs ‘may be cooling outside of London’.
He added: ‘This could be down to cost of living pressures pushing people towards buying cheaper petrol and diesel vehicles.
‘While the ULEZ expansion is likely playing a part in keeping London demand steady as drivers look to future-proof themselves, it is clear that more needs to be done to promote EVs in order to accelerate their take-up.’
Yet the recent plummet in value of used electric cars should be enough to drive demand.
Anyone currently on the look-out for a used EV is likely to benefit from falling prices, which have been in decline for almost a year and seen some models shed 40 per cent of their value in the first six months of the year alone.
The average listing figure for all secondhand EVs and hybrids on the AA Cars platform dropped by 3.9 per cent from £32,549 to £31,276 in the second quarter of this year, the company’s data shows.
‘Prices for used EVs on the AA Cars website are falling, which may entice more drivers to consider a second-hand electric vehicle for their next car,’ Oakley says.
‘However, while the cost of used EVs remain high compared to their petrol and diesel counterparts, more support may be needed from the Government in the future to help cash-strapped consumers with their purchases.
‘As more cities consider introducing clean air standards, interest in EVs should pick-up further as drivers view them as a long-term option that will always make the grade when it comes to emissions standards.
‘Drivers are understandably keen to save money where they can at the moment. We recommend that anyone buying a used car gets a vehicle inspection from a qualified engineer before parting with any money, as this will minimise the likelihood of you running into any unexpected — and potentially costly — issues in the future.’
BIGGEST EV AND HYBRID PRICE FALLERS APRIL-JUNE
10. Hyundai Kona Electric – down 5.7%
Avg price Q1 2023: £25,189
Avg price Q2 2023: £23,764
AA Cars says the average used price of a Hyundai Kona Electric is down 5.7% in the three-months of April to June
The previous generation Kona Electric is one of the better EVs on the market for anyone looking for a practical family car.
With 279 miles of range available from the larger of two battery sizes (64kWh), a roomy interior and boot and a grown-up cabin make it an appealing option for EV buyers.
But values of second-hand models on AA Cars have dropped by 5.7 per cent in the last three months.
9. Volkswagen e-Golf – down 6%
Avg price Q1 2023: £23,077
Avg price Q2 2023: £22,099
Volkswagen’s e-Golf has been out of production for almost three years, though second-hand values had been holding strong until recently. Prices are down 6% on AA Cars in the second quarter of 2023
Volkswagen’s go-to electric family hatchback until 2020 was the e-Golf – that’s before it was discontinued following the arrival of the brand’s ID.3.
Still today, it offers a relatively strong all-round package, though a range of up to 186 miles is far short of rivals on the market today.
Average values have dropped by almost £1,000 in second quarter of the year compared to the first.
8. Toyota Prius (hybrid) – down 6.4%
Avg price Q1 2023: £19,664
Avg price Q2 2023: £18,413
Toyota Prius average values on the used market have dropped by around £1,200 in the second quarter of the year
The Toyota Prius is the poster car for hybrids – it’s the model that kickstarted the green revolution and remains popular today, especially among taxi and private hire vehicle firms.
The latest version has seen values slip by 6.4 per cent in the last three months, AA Cars data shows.
That’s despite the fact a next-generation Prius has been launched but won’t be sold in the UK, which Toyota says is due to a lack of demand for non-SUV models.
7. BMW 330e (hybrid) – down 6.9%
Avg price Q1 2023: £23,724
Avg price Q2 2023: £22,099
BMW’s 330e is a widely regarded as one of the better plug-in hybrid models, though average used values have declined by almost 7% in the second quarter of 2023
The BMW 3 Series remains one of the best-selling compact executive saloons today, and the 330e is the plug-in hybrid version offering a greener alternative to a diesel for high-mileage drivers.
While it provides plenty of luxury and comfort – as well as a 41-mile electric-only range – there has been quite a fall in average values in the second quarter of the year.
AA Cars says prices have dropped by over £1,600 – a decline of 6.9 per cent.
6. Mitsubishi Outlander PHEV (hybrid) – down 7.1%
Avg price Q1 2023: £18,466
Avg price Q2 2023: £17,148
Mitsubishi’s Outlander for a period was the best-selling alternative fuel car in Britain. Average second-hand values are coming down
Mitsubishi’s Outlander for years led the way for plug-in hybrid sales, but since the demise of Mitsubishi in the UK its popularity has taken a bit of a nosedive.
Values for used examples of the most recent version on average are down over £1,000 from the beginning of April to the end of June.
That’s a price decline of 7.1 per cent in just three months.
5. Toyota Auris Hybrid – down 7.5%
Avg price Q1 2023: £14,902
Avg price Q2 2023: £13,788
Toyota’s Auris Hybrid is becoming an increasingly affordable used option. Average used prices are now down to just under £13,800
Like the Prius above, Toyota’s hybrid Auris – now replaced by the Corolla – has seen quite a large drop in average used prices in the three month period between April and June.
At the start of the quarter, buyers of second-hand models would have had to pay close to £15,000 to get their hands on one.
But by the middle of the year, average values have slid by 7.5 per cent to just under £13,800.
4. Hyundai Ioniq Electric – down 9%
Avg price Q1 2023: £22,608
Avg price Q2 2023: £20,564
Hyundai’s Ioniq is another electric car that’s seen a big drop in used prices in the second quarter of the year, falling by 9%, according to AA Cars data
Hyundai’s Ioniq was one of the Korean brand’s first mainstream fully-electric models it sold in showrooms – alongside a conventional and plug-in hybrid variant.
With a maximum range of 194 miles, lots of space in the back and a reasonable boot, the Ioniq is not a bad option for second-hand EV buyers on a budget.
Now out of production, used values are starting to take a turn, dropping by 9 per cent in three months.
3. Tesla Model 3 – down 10%
Avg price Q1 2023: £35,478
Avg price Q2 2023: £31,927
Teslas have seen a big drop in average used values across the board in recent months, mostly driven by the brand’s decision to slash new model prices. A second-hand Model 3 at the end of June was 10% cheaper than it was three months earlier
Still one of Britain’s best-selling new EVs, you would expect the Tesla Model 3 to be holding its value well.
However, even after a huge plunge in second-hand Tesla used prices between August and February – mostly driven by the brand’s decision to slash its new prices – the Model 3 continues to suffer depreciation.
Average prices are down 10 per cent in the three-month period, meaning a used example is around £3,500 cheaper at the end of June than at the end of March.
2. Nissan Leaf – down 10.8%
Avg price Q1 2023: £17,441
Avg price Q2 2023: £15,559
Average used values of Nissan Leaf EVs are down 10.8% in the second quarter of the year compared to the first, says AA Cars
One of the longest-running EVs on the market, the British-built Nissan Leaf in its most recent guise has been on sale since 2018.
With the standard Leaf offering a range of up to 168 miles between charges, there is also a Leaf+ that boosts this distance to 239 miles.
Yet average used prices are down 10.8 per cent in the three-month period, according to AA Cars.
1. Renault Zoe – down 13%
Avg price Q1 2023: £16,150
Avg price Q2 2023: £14,046
The biggest used EV price faller in the second quarter is the Renault Zoe. It has dropped by 13% in the three-month window
The biggest EV and hybrid price faller of all in the second quarter of 2023 was also the smallest model – the Renault Zoe.
The all-electric supermini has been on the market for over a decade, though in that time it has received a number of performance and range upgrades, with the latest version capable of covering up to 239 miles.
Though despite there being very few rivals in the small EV sector, values for Zoes sold via AA Cars fell 13 per cent between the start of April and end of June.
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