7:16 am, June 1, 2023
A worrying 29 of the top 30 biggest depreciating used cars in the last six months are electric – with some losing nearly 40 per cent of their value.
The Nissan Leaf (2017 model) has lost 39.4 per cent in just six months, according to data shared exclusively with Car Dealer.
The figures are the combination of the monthly percentage drops the used cars have suffered since December.
The data looks at three year old cars with average mileage. The prices are trade values, so the figures dealers will pay to buy the cars at auction.
Overall during the six-month period electric cars have lost on average 33.6 per cent.
Petrol cars during the same period have lost just 0.5 per cent and diesel cars have lost 1.3 per cent.
Only the Alfa Romeo Mito diesel – in 21st place – is the only non-electric car on the list, dropping 27.9 per cent.
When it comes to monetary value – actual pounds lost in the period – the Porsche Taycan has fallen the most, losing £20,750. This was closely followed by the Tesla Model X, losing £20,086, and the Tesla Model S which has lost £16,217.
The stark figures show the impact of the huge price drops used electric cars have suffered in the last few months as buyer confidence has waned and consumers shun the used EV market.
Derren Martin, director of valuations at Cap HPI, said: ‘Electric vehicles have suffered a difficult period in the used car market.
‘For a number of reasons they dominate any list of the biggest fallers in value over the last nine, and especially the last six months.
‘Initially, many battery electric vehicles (BEV) were particularly expensive in comparison to petrol and diesel equivalents, sometimes the same model being £10,000 more with an electric propulsion.
‘Secondly, range anxiety remains an issue, or at least a concern as to where consumers are going to charge and how long it will take on longer journeys – the cold weather over the winter did not help, as this generally diminishes the available range.
‘There were also a number of unfavourable press reports surrounding queues of two to three hours over the Christmas period, particularly at motorway service stations.
‘Thirdly, there is the cost to charge. With prices of electricity having increased and fossil fuels reducing over winter months, it became as expensive to charge your BEV as to fill up your ICE car, particularly if not charging at home.
‘Finally, supply levels of electric vehicles increased in the used market, based on cars coming back from registrations three-years ago.’
Martin said that there are a number of three to four year old electric cars now coming back to the market from leases and that increase in supply is not being matched by demand.
Martin explained that the price falls in some cases are starting to level out, but in a recent video interview on May valuations he said some electric cars still have some way to fall (watch it above).
He added: ‘There are now large nuances for different EV’s used values, with the Tesla Model 3 dropping slightly in Cap Live early on in May, but recovering as the month progressed and ending up level compared to where it was in April.
‘The Tesla Model Y also remained level, while Models S and X both dropped by three per cent.
‘The Polestar 2 Long Range, Nissan Ariya and Mini Cooper Electric all bucked the overall EV trend, with the former increasing in value by an impressive four per cent on average, equivalent to £1,400, and the latter two remaining level, in May.
‘However, a number of EVs continued to drop heavily in value.’
Still not selling
Martin said that in some cases electric versions of some popular models are now priced below their equivalent combustion engined counterparts – and are still not selling.
He said: ‘There is a situation where some EVs are now far cheaper than ICE equivalents and still not selling in enough volume to halt values from dropping, for example the Golf and Mokka Electric variants sit some £4-5k below the similarly powered petrol variant.
‘Demand needs to improve as more of these cars enter the used market.’
Tom Barnard, editor of Electrifying.com, told Car Dealer prices have fallen after the market was spooked by Tesla’s price cuts.
He said: ‘It’s certainly been a tumultuous few months in the used electric car market.
‘After more than two years of demand exceeding supply, the factories are suddenly back up to speed and there is suddenly stock of new models rather than long waiting lists. As a result, we are starting to see discounts again, which knocks used values.
‘We also can’t underestimate the impact of Tesla’s sudden price cuts on the used markets. Residuals spiralled downwards as owners and traders alike became frightened of losing more money. This then hit the values of rival cars.
‘Add in the loss of government incentives in England and Wales for private motorists, along with a rise in energy costs and it’s been a perfect storm for EV values.’
He added that while it’s not great news for owners, those looking to get into the electric market can now pick up a bargain.
Barnard said: ‘For years people have been complaining that EVs are too expensive – now they’re not.’
The Top 30 biggest falling used cars in last 6 months
Source: Cap HPI, ranked on percentage drops
1. Nissan Leaf
- Drop: 39.4 per cent
- Lost: £7,969
- From: £20,244
- To: £12,275
2. Seat Mii electric
- Drop: 38.7 per cent
- Lost: £5,850
- From: £15,100
- To: £9,250
3. Kia Soul electric
- Drop: 37.8 per cent
- Lost: £6,800
- From: £18,000
- To: £11,200
4. VW Golf Electric
- Drop: 37.3 per cent
- Lost: £7,450
- From: £19,950
- To: £12,500
5. Hyundai Ioniq electric
- Drop: 36.3 per cent
- Lost: £6,850
- From: £18,850
- To: £12,000
6. Peugeot 2008 electric
- Drop: 36 per cent
- Lost: £7,650
- From: £21,245
- To: £13,595
7. Hyundai Kona electric
- Drop: 35.4 per cent
- Lost: £8,169
- From: £23,050
- To: £14,881
8. Renault Zoe
- Drop: 35.4 per cent
- Lost: £5,532
- From: £15,643
- To: £10,111
9. Peugeot 208 electric
- Drop: 34.7 per cent
- Lost: £6,605
- From: £19,010
- To: £12,405
10. Vauxhall Corsa electric
- Drop: 34.7 per cent
- Lost: £6,063
- From: £17,475
- To: £11,413
11. MG Motor ZS electric
- Drop: 34.7 per cent
- Lost: £6,475
- From: £18,675
- To: £12,200
12. Kia e-Niro
- Drop: 34.2 per cent
- Lost: £8,940
- From: £26,160
- To: £17,220
13. Volkswagen e-UP
- Drop: 32.7 per cent
- Lost: £5,075
- From: £15,525
- To: £10,450
14. BMW i3
- Drop: 31.7 per cent
- Lost: £7,220
- From: £22,830
- To: £15,610
15. Tesla Model S
- Drop: 31.5 per cent
- Lost: £16,217
- From: £51,450
- To: £35,233
16. Jaguar I-Pace
- Drop: 31.4 per cent
- Lost: £12,957
- From: £41,257
- To: £28,300
17. DS3 Crossback electric
- Drop: 31.4 per cent
- Lost: £6,375
- From: £20,325
- To: £13,950
18. MG MG5
- Drop: 31.2 per cent
- Lost: £5,925
- From: £19,000
- To: £13,075
19. Tesla Model X
- Drop: 30 per cent
- Lost: £20,086
- From: £67,052
- To: £46,967
20. Mercedes EQC
- Drop: 29.1 per cent
- Lost: £14,467
- From: £49,800
- To: £35,333
21. Alfa Romeo Mito diesel
- Drop: 27.9 per cent
- Lost: £2,375
- From: £8,500
- To: £6,125
22. Audi e-Tron Sportback
- Drop: 27.8 per cent
- Lost: £14,080
- From: £50,600
- To: £36,520
23. Mini Cooper electric
- Drop: 27.8 per cent
- Lost: £6,050
- From: £21,767
- To: £15,717
24. Polestar 2
- Drop: 27.7 per cent
- Lost: £11,300
- From: £40,800
- To: £29,500
25. Smart ForFour electric
- Drop: 26.3 per cent
- Lost: £3,017
- From: £11,483
- To: £8,467
26. Honda E
- Drop: 25.5 per cent
- Lost: £5,625
- From: £22,025
- To: £16,400
27. Vauxhall Vivaro Life electric
- Drop: 25.5 per cent
- Lost: £6,750
- From: £26,425
- To: £19,675
28. Tesla Model 3
- Drop: 24.8 per cent
- Lost: £8,775
- From: £35,400
- To: £26,625
29. Porsche Taycan
- Drop: 24.2 per cent
- Lost: £20,750
- From: £83,625
- To: £62,875
30. Smart ForTwo electric
- Drop: 24 per cent
- Lost: £2,910
- From: £12,120
- To: £9,210
For the latest on used car prices join our WhatsApp groups (link below) or check out the Used Car tab at the top of this page.
