One new electric vehicle is registered every minute in the UK on average, but the crucial second-hand market is just beginning to catch up.
The average retail value for used EVs fell by nearly a fifth year-on-year in June, Auto Trader has reported. This marks the sixth consecutive month of declining prices, with the average used EV now around £5,000 cheaper than it was in January 2023.
Prices have been driven down by an increase in the supply of used vehicles, particularly from business fleets on leasing arrangements that have come to an end. The supply is so great that it has temporarily outstripped consumer demand.
‘More people behind the wheel of an EV’
According to the Society of Motor Manufacturers and Traders (SMMT), sales of used EVs have soared as a result, with sales of pure battery EVs growing by 82 per cent in the second quarter of 2023 to more than 30,000. Sales of plug-in hybrids have also increased by more than 11 per cent.
“It’s great to see a recharged new car sector supporting demand for used cars and, in particular, helping more people to get behind the wheel of an EV,” said SMMT’s CEO Mike Hawes.
Ian Plummer, commercial director at Auto Trader, added: “The rapid growth in second-hand electric cars, also seen by record levels of demand on Auto Trader, is encouraging as more consumers identify pre-loved electric vehicles as a more affordable route into electric ownership.
“The influx of supply at the back end of last year has continued throughout [the first half of the year] which meant a decline in used car prices, but a welcome boost in choice for consumers. We anticipate the used EV market stabilising now in terms of prices.”
Salary sacrifice solution
Meanwhile, Octopus Energy has announced that it will begin offering second-hand EVs through a new workplace salary sacrifice car leasing service. The initiative will work similar to the popular cycle to work scheme, allowing employees to lease a fully-serviced used EV for around £300 per month including fuel, insurance and maintenance costs.
The energy giant launched a salary sacrifice service for new EVs in 2021, which has been taken up by more than 3,500 companies to-date.
