Electric car price drop in turbulent year

author: FutureCar Staff    

Electric cars have experienced a challenging year in terms of falling prices, with some nearly-new battery vehicles losing more than half of their value, according to data shared exclusively with This is Money. The decline in values is attributed to falling demand and an oversupply of used electric vehicles (EVs) entering the market. In the past 12 months, the values of second-hand EVs have plummeted, with some models shedding over 30% of their value in just one year. A market expert predicts that the decline in EV prices may continue or begin to level out in the coming months.

While new EV sales are booming and account for one in five new car registrations in the UK, the used EV sector has seen a significant decline in values. This decline can be attributed to several factors, including the cost-of-living crisis, high energy prices, increased scrutiny of electric cars in mainstream media, an oversupply of used EVs, and Tesla's decision to reduce prices at the beginning of the year. The head of valuations at cap hpi describes the impact on second-hand electric car prices as "seismic."

Data from cap hpi reveals the biggest fallers in value over the past year for nearly-new EVs. The figures compare the sale price of a one-year-old EV with 10,000 miles on the clock in October 2022 to the sale price of a year-old example of the same model with the same mileage in September 2023. The data shows a measure of deflation, highlighting the significant decline in EV prices over the past 12 months.

The top 10 biggest used EV price fallers in the last year are:

1. Seat Mii Electric - down 50.3%/loss of £9,875
2. Renault Zoe - down 44.2%/loss of £9,536
3. Nissan Leaf - down 42.7%/loss of £10,982
4. Volkswagen e-Up - down 42.5%/loss of £9,700
5. Hyundai Ioniq Electric - down 40.8%/loss of £10,750
6. BMW i3 - down 39.9%/loss of £12,739
7. Mazda MX-30 - down 39.0%/loss of £9,119
8. Vauxhall Corsa-E - down 37.7%/loss of £8,731
9. Hyundai Kona Electric - down 37.6%/loss of £11,388
10. Peugeot e-208 - down 37.1%/loss of £9,485

According to cap hpi, the average values of year-old petrol cars have risen by 0.6% in the same period, and even diesel cars have increased in value by 0.5% on average over the past 12 months.

Despite the significant decline in EV prices, a market expert believes that the worst may be over. While some EVs may continue to see a further decline in value, particularly where volumes are increasing and values have not fallen as much as other models, overall, EV values are starting to stabilize. In August, EV values saw the smallest downward movement of the year, and many models are now adjusting in line with other fuel types in the same sector. However, some premium EVs may still experience heavy reductions due to financial headwinds consumers are currently facing.

FutureCar Staff