Why Is the Second-Hand Value of Electric Cars Plummeting?...

by Alan Martin at Evening Standard

After a couple of years of demand outstripping the supply of electric cars, it’s suddenly a buyer’s market.

Research by Car Dealer magazine shows that over the past six months, 29 of the 30 biggest depreciating used cars are electric models.

And the scale of the average decrease is especially astounding. While diesel cars dropped an average of 1.3 per cent and petrol vehicles just 0.5 per cent, electric cars’ auction prices have fallen by a massive 33.6 per cent since December.

The high price of premium electric vehicles means that this can amount to a loss of tens of thousands of pounds. The Porsche Taycan and Tesla Model X dropped more than £20,000 apiece, for example.

There are a couple of caveats to this before we get onto the ‘why’. Firstly, the data looks at “three-year-old cars with average mileage”, so it doesn’t include the very newest models.

Secondly, these are trade figures: the prices that dealerships pay at auction, rather than the cost to the consumer. One will impact the other, of course, plus resale value is an important factor for shoppers in the market for a new car.

Why Is the Second-Hand Value of Electric Cars Plummeting?…

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