Value of used electric cars drops as consumers shy away due to rising energy prices

Prices for EVs had fallen far more than the market average

Electric Car Charging Stations – London
Electric Car Charging Stations – London

Values of used electric cars are plummeting as buyers are increasingly turning away from these models because of rising energy prices.

According to data from automotive valuation experts Cap HPI given to Car Dealer Magazine, the average price of an electric car dropped 3.7 per cent in November, compared to the 1.2 per cent drop recorded across the market. Experts say that the additional cost of an electric over a petrol and diesel model, as well as rising charging costs, are making many shy away from choosing an EV.

The three biggest used car price falls recorded in November were all electric cars, with the Tesla Model S down £2,767 in price, accounting to a 5.9 per cent drop. Tesla’s Model 3 had fallen in value by the highest percentage (6.8 per cent), with an average price down £2,275, according to Cap HPI data. Audi’s electric e-tron SUV had also dropped in price by £2,154 (5.9 per cent).

The Tesla Model S was the car that fell the most in price in November. (Tesla)

Two further EVs also made up the top 10 biggest used car price falls in November, with the Renault Zoe down £808 (5.9 per cent) and Smart ForFour Electric dropping in value by £600 (5.9 per cent).

Speaking to Car Dealer, Derren Martin, Cap HPI’s head of valuations, said: “Consumer demand for electric vehicles has dropped away.

“Electric cars are often an aspirational purchase and in a cost of living crisis people are not necessarily going out and buying them at the moment. They’re expensive vehicles and there’s more of them coming back into the market. So it’s kind of the wrong time with demand dropping away and supply increasing – that really only leads to one thing.”

Used cars
Cap HPI is not expecting a crash in used car prices. (Blackball Media)

Martin added that car dealers are “concerned” about electric vehicle prices, though he says that used car prices in general aren’t going to crash in the way many predicted.

He said: “Last year, used car values went up by 30 odd per cent, which is absolutely unprecedented. A crash is just not going to happen.

“The reason that cars aren’t going to just drop in value in the used car market is because there’s just simply not enough supply. There’s two million less new car registrations in the market. Those cars are never going to appear as used cars. So there’s just not the supply there to cause a huge crash.”

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