Electrical automobiles (EVs) lower than two years outdated at the moment are retaining simply 47% of their unique worth, a dramatic fall from the 83% seen in 2022, in line with new information from Cox Automotive.
The collapse in worth is being pushed by an inflow of closely discounted new EVs coming into the market, with trade-in values for nearly-new fashions falling steeply in consequence.
In March, EV registrations hit file highs within the UK, with 69,313 new electrical vehicles offered. This surge was fuelled by important producer reductions – estimated to complete round £4 billion in 2024 – mixed with a wave of latest mannequin launches and the arrival of contemporary rivals into the UK dealership panorama.
The flood of discounted new fashions has eroded demand for nearly-new EVs. In line with Manheim Public sale Service information, EVs aged underneath 24 months now fetch, on common, simply 47% of their unique price new (OCN) at commerce auctions. In distinction, similar-age diesel automobiles are at the moment retaining round 70% of their worth.
Philip Nothard, perception director at Cox Automotive Europe, famous that whereas 2022’s excessive used automobile costs have been partly a results of post-pandemic provide constraints, the present depreciation charges for nearly-new EVs are unusually extreme.
“The heavy reductions on new EVs have primarily cannibalised demand for these only one or two years outdated,” stated Nothard. “Why would a purchaser pay virtually the identical worth for a used mannequin after they can get a brand-new one? It is a large setback for the used EV market, which wants each incentive it could actually get.”
There’s a brighter outlook for older electrical automobiles, nevertheless. EVs aged three to 5 years have solely seen a modest 15% drop in worth since 2022, partly as a result of they appeal to a unique purchaser profile and are much less affected by new car incentives.
“The used automobile market is an important supply of revenue for the automotive business,” Nothard added. “With circumstances changing into more and more unpredictable, stability in used EV values is important. Larger assist is required to sluggish the tempo of depreciation and strengthen this rising section.”
