2:14 pm, May 26, 2023
Used electric cars are still plummeting in price with another 4.1 per cent wiped off their value in May alone.
Following months of price falls, Cap HPI’s latest data shows the drop in electric car values has continued in May with an average fall of £800-£1,000 in the last month.
Although the price drops for some used electric cars are beginning to taper off, Cap HPI says there are still several models that are priced well above where the market expects them to be and that will lead to further ‘realignment’.
In an exclusive video update on the latest used car prices, which you can watch above, Cap HPI director of valuations Derren Martin tells Car Dealer that overall used car prices dropped 1.2 per cent in May.
The drop this month is the biggest monthly fall in used car prices this year, but Martin points out that it’s far better than the same month in previous years.
Excluding the unusual Mays in 2020 and 2021 where prices were skewed by Covid, the average drop in the month between 2013 and 2019 was 1.8 per cent. The largest May monthly fall was in 2019 when used car prices dropped 3.1 per cent.
Martin explains in the video that used car prices are falling back into a normal depreciation pattern following months of increases.
He said: ‘With an extra Bank Holiday thrown in, I think there was a little bit of trepidation about how this month was going to go. But it’s been what I would call relatively stable and we’re getting back into more seasonal happenings with values going down slightly.’
Biggest Used Car Price Drops
Source: May drops compared to April, Cap HPI
- Renault Zoe – down 9.7% (£838)
- Peugeot e-208 – down 8.8% (£1,010)
- Seat Mii electric – down 8.7% (£750)
- Mitsubishi Outlander diesel – down 8% (£1,225)
- Mercedes AMG C Class – down 7.8% (£2,565)
- Kia Soul Electric – down 7.8% (£850)
- Smart ForFour Electric – down 7.8% (£663)
- Vauxhall Corsa Electric – down 7.8% (£833)
- Volkswagen e-Up – down 7.7% (£800)
- Nissan eNV200 – down 6.9% (£1,094)
Martin explained that it has been a mixed picture for electric car values, despite the headline 4.1 per cent drop.
He said some have actually stabilised in value – the Tesla Model 3 and Model Y saw values remain static during the month after dramatic price falls since October.
Martin said: ‘Whereas over the last few months, most things have been dropping and dropping quickly – some are 30 to 40 per cent down over that period now.
‘What you’ve got now is you’ve got vehicles flattening out, so the Model 3 Tesla and Model Y, have actually been stable this month.
‘They haven’t dropped at all and the Model 3 actually dropped at the start of May and then we put it back up again because it’s recovered and it now looks quite good value for money.’
Martin used the example of a Skoda Enyaq of where some EV prices need realigning. That car was £2,000 less than a Model 3 a year ago and is now £14,000 above one.
He added: ‘It’s cars like that where there’s got to be realignments, because the benchmark is the Model 3 and it remains aspirational.
‘So other EVs are starting to jostle for position in price around that. It’s quite volatile and a little bit messy as values are still under pressure because there’s still more supply than demand.’
Martin said he thinks there is still some way to go before EV price drops taper off across the board adding that there are ‘some months to go’ before the falls level out.
It doesn’t help, added Martin, that EVs are still the cars proving hardest to sell for dealers.
While some dealers are dipping their toe back into the used EV market, many dealers are still avoiding them and that is piling on the negative pressure on prices.
Elsewhere, petrol and diesel models dropped just 1.1 per cent in May.
‘In comparison to EVs, they’re performing much better,’ said Martin.
‘The 1.1 per cent fall is a lot more normal and on the strong side really for the time of year.’
Looking ahead to June and the rest of the year, Martin expects there to be continued stability in used car prices.
He said: ‘June values always tend to be relatively stable. I think the average is sort of a 1.2 per cent drop, which is obviously similar to what’s happened this month.
‘So, I think there’ll be a smaller drop than that this time. I think we’re into a fairly stable period.’
You can watch the full interview with Derren Martin at the top of this post.
