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After a pretty turbulent few years for used electric car prices, the market appears to be heading in a very different direction, with the price of some second-hand EVs now rising sharply as more buyers make the switch to electric.
The biggest increase is among three-to-five-year-old electric cars, where average asking prices rose by 9.4 per cent year-on-year in August to £20,351, according to the latest data from Autotrader. Across the used EV market as a whole, like-for-like prices were up 3.8 per cent compared with a year earlier, marking the third consecutive month of annual price growth.
That’s quite a turnaround after several years in which falling used EV values attracted plenty of attention. And while higher prices might not sound like especially good news if you’re shopping for a second-hand electric car, a stronger used market could eventually have an impact on the cost of buying or leasing a brand-new one, too.
The Skoda Enyaq is proving popular on the used market with prices up 10.5 per cent year-on-year (Skoda)
That’s because the predicted value of a car at the end of a finance or leasing agreement plays an important part in setting monthly payments. If electric cars are expected to be worth more when they’re three or four years old, the amount that has to be covered during the agreement falls, potentially making new-car monthly payments cheaper.
Among individual models, the Renault Zoe recorded an 11.9 per cent year-on-year rise in asking prices, followed by the Skoda Enyaq at 10.5 per cent, MG5 at 10.4 per cent and Kia Niro at 10.3 per cent.
Demand for used electric cars also appears to be picking up. On average, they sold 27 days after being listed for sale during August, while older EVs aged between three and five years took 26 days to find a buyer. Martin Miller, founder of EV Experts, said: “We’ve seen the time between us buying an EV and selling it halve to under 30 days. That’s a pretty clear indication of where demand is heading.
“But speed isn’t the only important number. We don’t get returns because we spend time with every customer understanding how they’ll actually use the car and making sure the EV they buy meets all their needs. Buyers increasingly know they want an EV. Our job is to make sure they buy the right one.”
Octopus Electric Vehicles says it has seen an even more dramatic increase in interest. Its CEO Gurjeet Grewal said: “A strong used market means cheaper EVs and that’s a big win for drivers.
“We’ve seen demand for used EVs jump 150 per cent over the last year, showing that drivers are choosing electric for the value it offers, coupled with being a superior technology.”
The Kia Niro is another in-demand EV with prices up over ten per cent year-on-year (Kia)
The used market is particularly important because second-hand cars account for the majority of vehicle transactions in the UK. Record numbers of used battery electric cars have recently been changing hands, according to industry figures, as a growing choice of models, lower running costs and an expanding charging network encourage more buyers to consider one.
However, industry leaders are also warning against assuming that the job is done. BVRLA chief executive Toby Poston said: “The signs of consumer demand for used electric cars are encouraging, but the used EV market is still finding its feet after years of pricing pressure. Consumer confidence is building but remains fragile.”
Ben Nelmes, chief executive of New AutoMotive, said the latest figures suggest EVs are moving further into the mainstream: “Demand is growing because consumers increasingly recognise the value proposition. Lower running costs, improving infrastructure and a much wider choice of vehicles mean electric cars are becoming the obvious option for more households.”