Expert analysis shows that prices for electric vehicles at gas stations are 8.5% lower; this contributes to a huge increase in sales of used electric vehicles
- The values of used electric vehicles have plummeted since 2022 and are now below those of comparable vehicles with combustion engines.
- Used premium models can compete with new budget cars
- Popular models at a good price
- Larger supply of used electric vehicles increases availability
- Tesla Model 3 tops the used car sales charts
- Time to switch to electric?
Electric cars have not only reached price parity with petrol and diesel vehicles – they are now cheaper too. At least on the used car market. Experts have determined that a used electric car is now significantly cheaper than the equivalent alternative with a petrol or diesel engine.
The news comes amid a huge surge in used electric vehicle (EV) sales, which has contributed to a significant rebound in used car sales, with sales now just 3% below pre-pandemic levels through the first six months of 2024.
Used electric cars cheaper than combustion engines for the first time
The price of electric cars is a common complaint and is cited as a reason why sales are worse than they should be. However, the used car market is proving to be the exact opposite of the world of brand new models.
Analysis by experts at Cap HPI shows that an average electric car at three years old is around 8.5% cheaper than a petrol or diesel equivalent. At four years old, the difference is an impressive 14%.
Combined with the potential for lower running costs, owning an electric vehicle could now be within reach of many more drivers than before.
Why are used models so cheap? Well, it’s because of the speed of development. In just a few years, battery and motor technology has advanced significantly. A used Vauxhall Corsa-e, for example, has a real range of around 240 kilometers, while a brand new Corsa Electric manages 320 kilometers, which is an improvement of 25%.
Consumer confidence in used models can also be weak. In a survey by Autocar, 75% of drivers questioned expressed “serious concerns” about buying a used electric vehicle, with the most common concern being battery wear and tear from previous owners’ use.
This is despite the fact that battery replacements are very rare in electric vehicles, especially in models that are three to four years old. The standard warranty for electric car batteries is eight years or 100,000 miles, although some manufacturers offer even longer warranties – and these usually cover failure or degradation of the battery below about 80% of its original capacity.
Chris Plumb, used electric vehicle specialist at Cap HPI, explained that “the increasing availability of used electric models is driving demand as motorists look to reduce their carbon footprint and save significant costs on driving due to high diesel and petrol prices.”
Used electric cars at bargain prices
Up to £10,000
The bottom end of the market is reserved for cars like the first-generation Nissan Leaf or, god forbid, the G-Wiz – models that aren’t really useful in 2024. However, as you approach the £10,000 mark, there are some excellent used electric cars available, such as the Volkswagen e-Golf, BMW i3 or Renault Zoe – all with a usable range and excellent drivability.
£10,000 – £20,000
This budget gives you the opportunity to shortlist many more modern electric vehicles, including some that are still available today. The Tesla Model 3 is extremely popular both new and used, and a four-year-old example is well within this budget. If you want something smaller, the aforementioned Vauxhall Corsa-e is a good small EV. At the top end, you’ll find practically new, low-mileage models from 2022 or 2023 like the MG ZS EV, second-generation Nissan Leaf, or Kia Soul.
£20,000 – £30,000
At this stage, you have a free hand in the electric vehicle market – you can get great deals on a new model, but another option is to buy a used premium electric vehicle for the price of a new budget model. Models like the Toyota bZ4X, which are terribly good value new, become much more tempting when the delivery miles are less than £30,000. Or opt for a model from a true luxury brand like a Jaguar I-Pace or an Audi e-tron.
£30,000 – £40,000
Some of our all-time favourite electric cars are available at this price point. The Hyundai Ioniq 5, BMW iX or Kia EV6 are all available for under £40,000. Desirable models with extremely impressive stats, such as the Tesla Model 3 Performance, are also tempting options.
Rising electric car sales contribute to recovery of used car market
The rise in used electric car sales has helped the used car market overall. Data from the Society of Motor Manufacturers and Traders (SMMT) showed over 1.96 million transactions in the second quarter – 7.2% more than the same period last year and 6.8% more year-to-date. Used electric vehicle sales rose an impressive 52.6% year-on-year.
The resulting rebound means total auto sales are only 3% lower than before the pandemic, suggesting a market recovery.
SMMT chief executive Mike Hawes said: “It is encouraging to see that the used car market continues to recover, with choice and affordability being revitalised by continued growth in the new car sector.
“The increased supply of electric vehicles for second and third owners is helping to encourage more drivers to switch, underlining the importance of boosting the new electric vehicle market to support a fair transition for all.
“To maintain momentum, we need reliable, affordable and environmentally friendly electric vehicle charging points across the country, as well as incentives to help the whole of the UK move to net zero emissions.”
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