The used electric car market has seen a dramatic drop in prices over the past year, with some models losing up to 50% of their value. However, data shows the declines are starting to slow down as the market adjusts.
According to data from Cap HPI shared with Car Magazine, the Seat Mii Electric saw the biggest drop, losing 50.3% of its value since October 2022. Other models like the Renault Zoe (-44.2%), Nissan Leaf (-42.7%) and BMW i3 (-39.9%) also saw major declines. In cash terms, used electric cars like the Audi e-tron GT and Mercedes EQC lost over £20,000.
This contrasts with petrol and diesel cars, which have remained relatively stable or even increased slightly in value.
The falls started in late 2021 amid the cost of living crisis and soaring energy prices. They accelerated after Tesla cut new car prices in January, forcing other automakers to follow suit.
However, Cap HPI reports the declines are slowing down. There was less downward movement in August 2023 versus earlier months. With attractive pricing, consumer and dealer interest is starting to return.
Used electric car sales soar
There are now bargains to be had on used EVs. For dealers able to source the right stock, strong profits are possible. While the future remains uncertain, the used EV market appears to be bottoming out after a tumultuous year.
Sales of used electric vehicles in the UK hit record levels in the second quarter of 2023, according to new figures from the Society of Motor Manufacturers and Traders.
Over 30,500 pre-owned EVs changed hands from April to June, an increase of 81.8% compared to the same period last year.