In a surprising turn of events, used electric car prices have experienced a slight increase for the first time in a year, according to data from Auto Trader. The figures for September show that used EV prices have risen by 0.8 percent compared to the previous month.
While prices are still significantly lower than they were a year ago, this uptick in retail pricing is a positive development for the electric car market. Auto Trader attributes this increase to a potential situation of “demand outpacing supply” for EVs.
Auto Trader’s data also reveals that used EVs have lost 21.4 percent of their value over the past year. As a result of these significant price drops, many electric models are now cheaper in the used car market compared to their petrol or diesel counterparts.
For example, a three-year-old Renault Clio is currently priced at an average of £13,163, while an electric Zoe can be purchased for £12,550. Similarly, an electric Jaguar I-Pace costs around £30,000, whereas a fossil-fuel powered F-Pace is on average £4,000 more expensive.
Richard Walker, the data and insight director at Auto Trader, commented on the positive trend, stating, “Although it’s still early days, it’s positive to see that after more than a year of contraction, the market is beginning to see green shoots emerge in used EV pricing.”
Despite the positive news for EVs, petrol prices have also experienced a slight increase of 0.1 percent, while diesel prices have decreased by 0.7 percent compared to August. However, on an annual basis, petrol prices have risen by 3.4 percent, and diesel prices have increased by 2.4 percent.
The crash in used EV values over the past year was largely attributed to Tesla’s decision to slash the prices of its new models. However, the market seems to have stabilized, leading buyers to recognize the favorable value of used electric cars. Additionally, the recent rise in fuel prices has further incentivized individuals to consider EV ownership.
This increase in demand for used EVs not only signals a rise in their values but also gives dealers more confidence to invest in used EV stock. Car Dealer reported that some electric cars have experienced a depreciation of up to 50.3 percent within a year, but the current market conditions are leading to a resurgence of interest in these vehicles.
Overall, the rise in used electric car prices demonstrates positive signs for the EV market, indicating potential stability and growth in the future.
– Auto Trader: September Pricing, Demand and Retail Insight
– Car Dealer: Used electric car prices appear to have bottomed out and are beginning to rise