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A two-speed used market for electric vehicles

Monday, November 25, 2019 - 09:42
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Electric Vehicles

Chris Plumb

Used values for battery electric vehicles (BEVs) are developing into a two-speed market, according to analysts at cap hpi. Values for models under £17,000 at one year and 10,000m have strengthened over the last 24 months while premium BEVs are weaker.

The data shows that models including the Citroen C-Zero (11-19) and Peugeot iON (11-19) have seen residual values improve over the last two years. In November 2017 a one-year-old and 10,000m Citreon C-Zero was worth around £6,000 and today a similar example is valued at over £11,000. Other models showing similar behaviour include the Peugeot iON and Renault Zoe. While performance has been strong volumes are limited in both the trade and retail market.

Premium BEVs remains a challenge due to the high cost new which translates to electric vehicles looking expensive when entering the used market. Models such as Jaguar I-Pace (18-), Audi E-Tron (18-) and Tesla Model X (16-19) have all seen values reduce over the past few months.

Chris Plumb, senior valuations editor at cap hpi said: “It’s clear that there is a growing market for a used BEV at a particular price point perhaps for use as a second car for city commutes. We expect to see demand continue to increase as clean air zones are rolled out across the country and the range of product widens.

“The premium models represent a different proposition, often with longer ranges and more features, the high purchase price at new is yet to translate in the used sector. Today a BMW i8  (13-) coupe is worth around £20,000 less at one year old and 10,000m than it was was two years ago. Equally the Jaguar iPace (18-) has seen values drop around £10,000 over the last 12 months.”

As volumes of BEVs increase in the market some mainstream models have seen pressure and values drop. The VW Golf (14-) and Nissan Leaf (10-18) have seen values decline following an increase in volumes of two-year-old product, in particular, those with a 30KWh battery.

According to SMMT data, the rapid adoption of alternative fuelled vehicles accelerated in October with all forms of hybrid and battery vehicles reaching a 13.4% share of the new market.

Plumb said: “We are in a transformational period for the alternative fuelled vehicle with the rapid growth of new car volumes and greater choice in the used sector. The roll-out of charging infrastructure and increased battery ranges will only accelerate the adoption of these vehicles. Over time, used values have stabilised and now perform against the same market pressures as their petrol counterparts.

“As supply and demand shift we see pressure on some models and, in some cases, values appreciate on others. We expect dozens of new models in 2020 and it will only bring more choice to the used buyer.”

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