Electric vehicles (EVs) are now familiar on the roads, with some waxing lyrical about their benefits and others slightly more sceptical. One of the biggest drawbacks until now has been the cost; whilst presenting savings (not to mention the environmental benefits) in the long term, short-term, EVs require a large cash investment in the first instance. What’s more, as they are so new to the market, there hasn’t been much of a used-car market, meaning that the only option was to buy brand new. Well, those days might be over, with 2020 being the first year that EVs are widely available second hand.
In this series, we look at the potential of the second hand EV market, and what you need to know before you bite the bullet and buy.
The success and demand within the used EV market will have an impact on the industry overall: people’s willingness to buy second hand and the amount that they are willing to pay will influence how much people are willing to invest in buying new; and people who are unsure about investing in a new EV, or who are unable to afford new, will take their first tentative steps into the world of electric vehicles.
The market is continually changing; new models are coming on the market that have longer ranges, charging points are now the norm across the country, and there are numerous schemes to allow people to install on-road EV charging points. There seems to be a divide in the values of used EVs. The lower priced range, such as Renault Zoe and Peugeot iOn seem to be seeing a comparative rise in value, whereas electric vehicles at the upper end of the scale (Tesla, Jaguar, Audi) are still falling in value.
A significant influencer on the used car price is its usage; it may be that the higher end, bigger cars are losing value because people are less sure of the vehicle’s power and functionality after more miles. As a result, small cars which have been used as second cars or city commuters seem to hold their price better. As more clean air zones pop up in cities and the government introduces increasing financial benefits of running an EV or hybrid, more people are likely to look for a run-around, therefore increasing demand and value. This is another reason why smaller used EVs hold their price better than their larger more heavily used counterparts.
As the market matures and trust in buying used increases, the fluctuating market will probably stabilise; in the meantime, now could well be a good time to invest. Contact your local car dealership to see what they have available.
If the EV market really is moving into its next phase, it is worth doing some homework before you go out and start buying. If you want to get all the benefits of driving an electric vehicle without the price tag, follow Trust A Garage on Twitter or Facebook and check out our next blog, which provides you with a guide on how to buy a used EV.