EV Prices Stabilize: The latest data from Auto Trader reveals a welcome shift in the used electric vehicle (EV) market. After 12 consecutive months of decline, the average retail price of an EV now stands at £32,203, marking a 0.6% increase in October.
This trend comes in contrast to a 0.5% month-on-month increase for used cars overall, which average £17,774, though year-on-year values are still down by 0.9%. While petrol vehicle prices saw a slight uptick of 0.2%, diesel values made a more substantial leap, increasing by 0.7%.
Auto Trader attributes this change in pricing dynamics to surging demand outpacing the supply of EVs on its platform. In October, EV demand skyrocketed by 78.4%, while diesel demand dropped by 1.1%, and petrol saw a meager 2% increase.
This trend is further accentuated by the supply side, which increased by 24.3% month-to-date. Though this is lower than the extreme highs of 115% in August and 57% in September, it’s evident that the market still experiences an influx of around 750,000 EVs purchased in the last three years.
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This trend has a notable impact on younger vehicle values. The retail price of used cars less than a year old dropped by 2.9% year-on-year in mid-October, compared to -2.5% in September. One to three-year-old cars also exhibit a decline of 6.7%, mirroring the rate recorded last month.
Auto Trader’s Data and Insight Director commented, “The continued realignment in used electric pricing is the real stand-out so far in October, with another month of improvement after a year of decline.
For the moment, we’re seeing the stars align for second-hand EVs; greater affordability and rising fuel prices are making them a more viable alternative to traditional internal combustion engine vehicles, which continue to increase in value. The combination of accelerating demand and softening supply is good news for retailers, as EVs currently represent real profit potential.”
Our Reader’s Queries
Will EV prices go down in 2023?
Recent studies indicate that the prices of used electric vehicles (EVs) dropped by approximately 30% during September and October 2023 compared to the same period in 2022. In contrast, the prices of used vehicles, including internal combustion engine (ICE), hybrid, and EVs, decreased by only about 5%. This significant decline in used EV prices can be attributed to Tesla’s decision to lower the prices of its new cars.
Are electric cars going to become cheaper?
According to experts, electric vehicles are expected to become more affordable in 2024. This is due to an increase in incentives and discounting, as well as a surplus of unsold inventory on dealer lots. As a result, consumers can anticipate finding great deals on zero-emission cars in the near future.
Are EVs holding their value?
According to iSeeCars, electric vehicles experience a significant depreciation rate of nearly 50% over a five-year period. This implies that the average EV loses half of its value within just five years.
Why are EV car prices dropping?
The automotive industry is feeling the pressure of high interest rates and an unstable economy. Both new and pre-owned car sales have slowed down, leading to a decline in prices. According to Karl Brauer, iSeeCars executive analyst, the contraction of used car prices began in the middle of 2022.