Used EV prices falling at a higher rate than petrol and diesel

[Deleted member 10041]

Article in this month's car dealer magazine.

Cap HPI called battery electric vehicles ‘the most challenging area of the used car market’ in December.

December saw EV values drop for the fourth month in succession.

At the three-year point, EVs were down by 5.2 per cent, or c.£1,625 – a new record.

When the past four months are added together, values have fallen by 10.4 per cent or c.£3,500.

Tesla Model 3s saw one of the largest downward movements, dropping by 9.6 per cent or by around £3,000. The Model Y, meanwhile, fell by nearly six per cent.

Other premium EVs have slashed in value too – the Audi Q4 e-Tron fell by 5.9 per cent, Mercedes-Benz EQC by 10.6 per cent and Jaguar I-Pace by 8.7 per cent.

Prices of mainstream EVs also fell – the Renault Zoe dropped by 6.9 per cent, for example, while prices of the Nissan Leaf reduced by nine per cent.

Cap HPI said these values were often due to used examples being sold at higher prices compared to new models, so it was expected, but it was happening ‘quicker than anticipated’.

 

[Cocijo]

Interesting. I don’t understand this part;
‘Cap HPI said these values were often due to used examples being sold at higher prices compared to new models, so it was expected, but it was happening ‘quicker than anticipated’.
How does that impact the value reductions that are happening?

 

[Deleted member 10041]

My understanding, as a total layman, is that the used EV market had unsustainable used/trade in prices. Basically due to the number of people trading in/selling on motorway etc for more money than they originally paid (lots of examples of that, id3's were crazy people were getting thousands more than the originally paid)
It would appear the bubble has burst/has a slow puncture and used prices are dropping down below new list prices (as they should be) and then depreciating like any other car will.

In the article petrol cars dropped by 1% and diesel by 1.3% in the last month.

 

[Deleted member 10041]

The model 3 bubble had to burst, price rises were all big jumps. £10000 since 2019! £38000 -£48000 now
The Tesla website at the end of the year had loads of pre reg (0miles) model 3's below list price and 6000 miles of three super charging thrown in

 

[Cocijo]

So, it looks like residual values will start to normalise.
Perhaps that will also bring back with it the new car discounts that up until this unusual period have always been available.

 

[Deleted member 10041]

So, it looks like residual values will start to normalise.
Perhaps that will also bring back with it the new car discounts that up until this unusual period have always been available.

Don't think we are quite there yet just with the long lead times on most new cars.

 

[Cocijo]

Yeah. It’s alien to me to spend so much without getting a good discount.

 

[Lguk]

So basically... The inflated 2nd hand prices due to lack of stock have fallen to below new vehicle order prices, so just sensational headlines..

 

[Deleted member 10041]

Unless they continue to drop by a good bit more than petrol and diesel, going into the year.
A positive from this could be making the used EV market a more affordable proposition

 

[Deleted member 10041]

To be fair the whole used market is still in a right state

 

[Edoc16]

To be fair the whole used market is still in a right state

A bit like the economy ...

 

[Deleted member 10041]

A bit like the economy ...

Isn't that the truth

 

[Shrink Proof]

But... but... surely the resale value of the used item should be much higher than the original purchase price, not lower? After all, this is what the media constantly tell us is "healthy" when we're buying and selling houses.

 

[Deleted member 10041]

Hardly comparable

 

[Lguk]

Akin to big corporations that "lost £15m this quarter" they've lost nothing, they just gained less than they predicted, they still made profit.

 

[Deleted member 10041]

The more EV's are sold the more will turn up on the used market, prices for used EVs will continue to drop till eventually they are like any used car.

The used market over the last couple of years is gradually sorting itself out from the perfect storm of COVID/semi conductor shortages.