12 Jul 2024
The voice of the independent garage sector

Used EVs prices to fall as company cars flood used market?

The median price of used EVs fell by £10,000 in the last six months with company-owned cars entering the second-hand market as their leases expired, new research has found.

The study, from NewAutoMotive, also found that used hybrid vehicles experienced a £9,000 fall in value for the same reason. In total, there are 475,000 electric cars, and 200,000 plug-in hybrids owned by companies. The majority are kept for between two and four years before being sold.

According to New AutoMotive CEO Ben Nelmes, more EVs available in the used market could push prices down across the board, making EVs more accessible to those on lower budgets: “The benefits of going electric will be increasingly available to people up and down the country, and it’s great to see that so many people are now able to purchase ex-corporate fleet cars on the growing used EV market.”

He continued: “It’s no surprise that since 2020 – when the tax rate on company purchased electric vehicles dropped to 0% – there’s been a huge uptick in the number of corporate electric vehicles on our roads.”

Ben added: “The Government’s strategy was to encourage companies to be the early adopters of electric cars. As the first wave of company-owned electric cars are starting to flow into the used car market, motorists are reaping the rewards of the Government’s strategy. It’s a trend that’s set to accelerate as more second-hand vehicles appear on the market, forcing the price down even further and accelerating the UK’s transition to electric.”

For more information, visit: https://newautomotive.org/blog/m8s7o74iovbcmoqude5vjli4iwbdrr