- Across the world, used prices of certain used EVs are continuing to drop significantly, making them even more of a bargain against their ICE alternatives, on the second hand market.
- Recent research from US-based iSeeCars shows EVs such as the Tesla Model 3, Kia Niro EV, and Nissan Leaf, to have the biggest price drops on the used market in the country – but data from UK marketplaces shows that similar drops are taking place across the pond, too.
- The price drops have come from a variety of factors, such as end-of-lease EVs flooding the market, and more locally in the US, rental companies such as Hertz, selling off 30,000 EVs into the US used market.
Used EVs get even cheaper
Recent research from iSeeCars, in the US, found that the average EV in the US had lost 25% of its value in the last year, with the Tesla Model 3 leading with the highest reduction – with an average used price, now, of $25,931, compared to $34,489, at the same time last year. One contributor to this is a boom in people buying EVs on leases around three years ago, leading to a significant number of these continuing to filter through onto the second hand market, helping push down prices further. That’s great news for those in the used market, but less though for those who have just purchased a brand new EV. However, with cheap used EVs being the first electric experience for many of their buyers, this could translate to the purchase of a new EV further down the line.
In the UK, and across Europe, the same has been the case. Recently, the UK’s HPI found that used EVs had actually dropped below the price of their ICE counterparts, which helped pushed the country’s used EV market to record sales figures. A glance at AutoTrader, at the time of writing, confirms this trend is continuing, with over 800 EVs listed under the £10,000 ($13,000) barrier. This ranges from low mileage electric city cars, like the Vauxhall Corsa-e, to even a Jaguar I-PACE – which had an original list price north of £70,000 ($91,450), just a few years ago. Even high mileage options should remain an attractive option to used buyers, considering Tesla’s recent study on battery degradation.
It’s not just the used EV side that’ll help drive adoption, as despite these low values for used EVs, prices of new EVs are also starting to come into line with their ICE counterparts. In the UK, the new Vauxhall Frontera SUV, for example, costs the same £23,495 ($30,700), whether buyers opt for the petrol or fully electric powertrain. Only time will tell how much further the prices of used EVs will drop, across the world.
