By ROB HULL
Updated: 02:41 AEDT, 11 December 2024
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Second-hand electric cars are currently selling faster than petrol and diesel models - and it's all because they're becoming far more affordable as a result of crippling depreciation.
Earlier this week, This is Money revealed that dealers across the country are selling a used electric vehicle (EV) in just 33 days compared to the 40-day average across all fuel types.
The reason why they're being snapped up so quick is the tumbling price of pre-owned EVs, which continue to decline in contrast to their internal combustion engine counterparts.
Our exclusive report earlier this year showed that electric cars generally lose the biggest chunk of their value in the first 12 months. After this, depreciation slows each year to a rate similar to that of an equivalent petrol or diesel model.
This is the result of a perfect storm of factors affecting second-hand battery car prices.
Consumer demand remains relatively low due to ongoing concerns about the longevity of batteries, fears that fast-developing tech is making EVs quickly outdated, and ongoing perceptions that the nation's public charging infrastructure in lacking.
Also weighing on the residual value of EVs is the constant stream of them entering the second-hand market.
These are predominantly the EVs registered by fleets and employees using salary sacrifice schemes, both of which offer significant tax-cutting benefits. These currently account for more than four in five new battery cars entering the road in Britain, according to industry figures.
However, this high volume of tax-advantaged EV uptake isn't being matched by second-hand consumer demand, which is weighing further on the residual value of pre-owned battery cars.
Valuations expert cap hpi has exclusively revealed to This is Money which used EVs are plummeting in value most. Here's the top 10...
Here's the countdown of the 10 EVs that have suffered the most significant second-hand value deflation in the last 12 months, based on market data supplied by cap hpi
The exact depreciation (which is when a car becomes less valuable when it gets older) of electric cars has become very difficult to measure in recent months.
That's because it is almost impossible to determine exactly how much buyers are paying for new EVs.
In a bid to meet binding zero emission vehicle sales targets set out by the ZEV mandate, car makers and their dealers have been slashing the price of new battery vehicles - in some cases by up to a third - to make them more appealing to customers.
Therefore, the recommended retail price - RRP - is no longer an accurate starting point to calculate the loss in value of EVs over time.
However, a far more dependable measure is comparing the price deflation of a used car today compared to what it would have been worth if it was sold a year ago by tapping into historical data.
Having originally been introduced to the UK market exclusively as an electric car, Jeep's parent group Stellantis reacted to a lack of demand and earlier this year made the compact SUV available with petrol and hybrid drivetrain options, undercutting the EV by as much as £6,000.
Looking solely at the battery-only models, which offer a range of up to 249 miles and now start from £29,999 after a recent £5k price cut, the average value of a year-old Avenger sold in November 2023 was £27,600.
Last month, a 12-month-old example was changing hands on average for £19,150, which is a decline of almost 32 per cent.
Avg used value in Nov23*: £22,675
Avg used value in Nov24*: £15,725
Fall in value: -£6,950
Citroen's e-C4 X fastback is a spacious family EV with a big boot. However, its quirky looks haven't spared it big second-hand value loss in the last 12 months
The French car firm's fastback model is available in the UK with two battery sizes: one with 50kW offering a full charge driving range of 222 miles and a 54kW battery option upping the distance to 263 miles.
With prices starting from £27,360, this is one of the more affordable family models on the market today with a spacious boot and a stylish finish.
That hasn't stopped it suffering substantial second-hand deflation during 2024. A year-old used example was valued on average to be worth £22,675 in November 2023; last month's average sale figure was some 31 per cent lower at just £14,725 for a 12-month model with 10k on the odometer.
Avg used value in Nov23*: £42,625
Avg used value in Nov24*: £29,508
Fall in value: -£13,117
The Genesis GV60 remains a pretty niche model on UK roads. It has suffered used deflation of almost 31% in 2024
Hyundai's luxury spin-off brand, Genesis, is another relative newcomer to the market - and the GV60 is its most affordable electric car that comes with a very unique feature.
Price new from £54,105, it offers a range of 321 miles and - thanks to its 800V technology - can be charged using an ultra-rapid public charger from 10 to 80 per cent in just 18 minutes. While this sounds impressive, Genesis hasn't really taken off in the UK yet, amassing only 1,099 registrations across its entire line-up in 2024.
Despite the GV60's exclusivity, it has suffered a loss in used residual value in the last year, with year-old examples in 2023 valued at £42,625 and in 2024 dropping to just £23,508.
Avg used value in Nov23*: £36,479
Avg used value in Nov24*: £25,087
Fall in value: -£11,392
The bZ4X is Toyota's first attempt at a 100% electric car. Unfortunately for the Japanese marque, it's suffering substantial year-on-year used price deflation of almost a third
Earlier in this list (in the number 7 spot), we told you about the 26.3 per cent deflation of the Subaru Solterra. However, its Toyota sister model, the bZ4X, is faring worse.
Cap hpi says the average value of a 12-month-old example with 10,000 miles on the odometer was selling in 2023 for almost £36,500 on average. But a year-old bZ4X with that same mileage is now valued on the second-hand market at just £25,000.
The near £11,400 deflation is not what Toyota will want to hear, given this is its first entirely electric car having solely focussed on hybrids and - lesser so - hydrogen fuel cell up until 2021. A new bZ4X starts from £42,860.
Avg used value in Nov23*: £21,850
Avg used value in Nov24*: £11,650
Fall in value: -£10,200
Despite a change in name - from Funky Cat to 03 - Great Wall Motors' first Ora model sold in the UK is suffering second-hand price deflation in the region of half
The second Chinese EV to make the list has suffered huge second-hand deflation in 2024, cap hpi's data shows.
Ora, a brand owned by Far East giant Great Wall Motor, entered the UK market in 2022 with the oddly named Funky Cat supermini. Britons didn't take to the moniker, which has seen its nameplate already changed to the more palatable '03'.
But a fresh name hasn't saved this small EV from big value loss. Despite starting from £31,995 (and offering ranges of between 193 and 260 miles), a year-old Funky Cat with average mileage in November 2023 had fallen to just £21,850. Twelve-month-old examples on the market now are down to just £11,650, which is deflation of 47 per cent.
Avg used value in Nov23*: £47,650
Avg used value in Nov24*: £15,625
Fall in value: -£32,025
There's a very good reason for why the Fisker Ocean electric SUV has suffered enormous price deflation in 2024...
There's a very good reason for why the Fisker Ocean is placed at number one on this list with monumental deflation of 67.2 per cent, which translates to a year-on-year price declines of £32,000 for 12-month-old cars.
And that's because the company has gone into administration.
The American start-up filed for bankruptcy in June, having only just entered the UK market a year earlier.
It has been plagued with missed production targets, supply delays and mechanical issues before filing for insolvency in the summer.
Only around 10,000 Oceans were produced, and just under 5,000 cars were delivered. Some 400 examples came to UK customers.
Since going into administration, software updates have gone offline, meaning any issues with the technology might not be fixable and certainly not upgradeable.
A lack of spare parts and repair knowledge could also render the cars - which cost between £37,000 and £62,000 new - useless for the unfortunate 400 UK customers who bought one of the SUVs.
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