Motorists wanting to switch to an electric vehicle aren’t just facing incredibly steep prices in new car showroom, they’re also being priced out in the used market, new report claims.
A lack of affordable second-hand EVs is stalling Britain’s switch to greener cars, Auto Trader warns.
There were just 10,000 used electric models advertised for less than £15,000 last month, analysis of Auto Trader marketplace shows.
That is compared with 350,000 second-hand petrol or diesel cars in the same price bracket.
Industry data shows that more than 100 different electric models are now available in UK dealers for the first time ever – an uplift of more than 500 per cent compared with a decade ago.
And with over a million EVs now registered on Britain’s roads, the expectation is that the used market will grow, and prices will drop as a result.
However, Auto Trader says the increase in sales of new EVs is not yet providing budget-friendly second-hand selections of battery cars.
This is despite many year-old used battery models plummeting in value by as much as 40 per cent last year as a result of a wider dip in appetite.
Some of the most significant second-hand price fallers in 2023 were luxury models that – even with dramatic value loss – are still over £15,000, while the volume of cheaper options is relatively low due to the small numbers registered during the infancy of the EV market.
Slowing down the growth of the used market is the recent slip in demand for new EV models.
Industry figures point to a severe lack of appetite amongst private buyers, with fleets and businesses responsible for EV registrations growing on the back of lucrative tax-saving benefits.
However, the report went on to say that drivers looking to switch to a battery-powered model are in prime position to negotiate a deal with new car salespeople.
That’s because three out of four new EVs on sale on its website are being advertised with a discount.
Cheaper models are also due to enter the market this year, notably the new Dacia Spring EV, which will be Britain’s least expensive battery car starting from just under £15,000.
Auto Trader attributes this to manufacturers striving to meet the Government’s zero emission vehicle (ZEV) mandate, which was introduced this year and requires every major brand to sell a minimum share of electric models.
Auto Trader commercial director Ian Plummer said a ‘fair and equitable’ transition to electric motoring will require EVs to be available ‘in a variety of budgets’.
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