Nearly new electric vehicle values plummet
Nearly new electric vehicle values have plummeted in the last two years, according to new data from Cox Automotive.
While EVs less than two years old retained 83% of their value in 2022, that has nose-dived to just 47% last year.
In contrast, similar aged diesels retained about 70% of their value.
The dramatic fall in prices is a result of vehicle manufacturers offering heavy discounts on new EVs in order to boost sales and meet the stringent ZEV Mandate targets.
Heavy discounts
Philip Nothard, insight director at Cox Automotive Europe, said: “The heavy discounts on new EVs have essentially cannibalised demand for those just one or two years old. Why would a buyer pay almost the same price for a used model when they can get a brand-new one? This is a huge setback for the used EV market, which needs every incentive it can get.”
Sales of new EVs reached 69,313 in March, making it the best month ever, but this was driven by huge discounts estimated by the Society of Motor Manufacturers and Traders of around £4bn in 2024.
Northard said:
“The used car market is a vital source of profit for the automotive industry. With conditions becoming increasingly unpredictable, stability in used EV values is essential. Greater support is needed to slow the pace of depreciation and strengthen this emerging segment.”
