Used electric cars are now cheaper than petrol and diesel equivalents
August 12, 2024 by Tom Wiltshire
Car changing is a big deal
Expert analysis shows prices on forecourts to be 8.5% lower for EVs; helping drive huge surge in used EV sales
- Values of used EVs have tanked since 2022, bringing prices lower than combustion equivalents
- Used premium models can be on par with new budget cars
- Great value to be had on popular models
- Increased supply of used EVs boosts availability
- Tesla Model 3 tops used sales charts
- Time to go electric?
Electric cars haven’t just hit price parity with petrol and diesel ones – they’re now cheaper. At least on the used market. Experts have revealed that a used electric car is now significantly cheaper than the equivalent petrol or diesel-engined alternative.
The news comes alongside a huge surge in the sales of used electric vehicles (EVs) which has helped fuel a big recovery in used vehicle sales – which see the first six months of 2024 sit just 3% below pre-pandemic levels.
Used EVs cheaper than combustion cars for the first time
The price of electric cars is a common complaint and cited as a reason for sales being poorer than car manufacturers need. However, the used market is proving to be the opposite to the world of brand-new models.
Analysis by experts at Cap HPI shows the average electric car is around 8.5% cheaper than a petrol or diesel counterpart at three years old. At four years old, the difference is an impressive 14%.
Combined with the potential for reduced running costs, EV ownership could now be well within reach of many more motorists than before.
Why are used models so cheap? Well, there’s the pace of development. Even in just a few short years, the battery and motor technology has moved on significantly. A used Vauxhall Corsa-e, for example, has a real-world range of around 150 miles, whereas a brand-new Corsa Electric will do 200 miles for a 25% improvement.
Consumer confidence in used models can also be weak. In an Autocar poll, 75% of motorists asked cited ‘serious concerns’ about purchasing a used electric vehicle, with the most common of these being wear on the battery from previous owners’ use.
This is despite EV battery replacements being very rare, especially in three-to-four-year-old models. The standard warranty cover for electric car batteries is eight years or 100,000 miles, with some manufacturers offering even longer – and this typically covers the battery from failure or degradation below around 80% of its original capacity.
Cap HPI’s used EV specialist, Chris Plumb, explained that “the growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices”.
Used EV bargains
Up to £10,000
The very lowest end of the market is reserved for cars like the first-generation Nissan Leaf or, god forbid, the G-Wiz – models that aren’t really very useful in 2024. However, getting closer to the £10,000 mark opens up some brilliant used EVs, such as the Volkswagen e-Golf, BMW i3 or Renault Zoe – all of which have a usable range and are excellent to drive.
£10,000 – £20,000
This budget gives you scope to shortlist many more modern EVs, including several which remain on sale today. The Tesla Model 3 is a hugely popular car both new and used, and a four-year-old example is well within this budget. If you want something smaller, the aforementioned Vauxhall Corsa-e is a good small EV. Near the top end, you can find practically new low-mileage 2022 or 2023 models of cars like the MG ZS EV, second-generation Nissan Leaf or Kia Soul.
£20,000 – £30,000
At this stage you have the pick of the EV market – you can get great deals on a new model, but another option is to pick up a used premium EV for the price of a new budget one. Models such as the Toyota bZ4X, which are terrible value new, become much more tempting when delivery-miles examples are less than £30,000. Or, opt for something from a proper luxury brand, such as a Jaguar I-Pace or Audi e-tron.
£30,000 – £40,000
Some of our all-time favourite electric cars are options at this price. The Hyundai Ioniq 5, BMW iX or Kia EV6 are all available for less than £40,000. Desirable models with hugely impressive stats, such as the Tesla Model 3 Performance, are also tempting options.
Boost in EV sales helps recovery of used market
The uptick in sales of used electric cars has helped the used car market as a whole. Data from the Society of Motor Manufacturers and Traders (SMMT) revealed over 1.96m transactions in Q2 – 7.2% more than the same period last year, and 6.8% up year-to-date. Sales of used EVs, meanwhile, rose by an impressive 52.6% year-on-year.
The resulting boost sees overall car sales just 3% lower than they were pre-pandemic, signifying a recovery in the market.
SMMT chief executive Mike Hawes said: “It’s encouraging to see the used car market continue its recovery, with choice and affordability rejuvenated by the new car sector’s sustained run of growth.
“The increased supply of electric vehicles to second and third owners is helping more motorists make the switch – underlining the importance of energising the new EV market to support a fair transition for all.
“Maintaining momentum requires reliable, affordable and green EV charging up and down the country, and incentives to get all of Britain on board the net zero transition.”
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