It’s been a turbulent year for the electric car market, with used values falling drastically throughout 2023.
In fact, the average price of an electric car had fallen 21.1 per cent in November compared to the previous year – well ahead of the overall average drop of 3.8 per cent for all fuel types.
But what’s been causing this steep fall in prices and is it set to continue? We’ll also pick out some of the best used EV deals currently available.
Why have used electric cars prices been tumbling?
There are a few reasons why used electric car prices have tumbled in 2023, with the most important one being over-supply for the used market. Most new electric cars are company cars that have been financed or leased for a set number of years (usually two or three). When the end of the contract is reached, they are returned in significant numbers and will then be sold on the used market.
While there is a growing number of private buyers choosing used electric cars, there hasn’t been enough for the sheer number of often very similar EVs being sold, which forces dealers to drop prices to be able to sell them.
The majority of new electric cars are also considerably more expensive than their petrol and diesel counterparts, meaning they have further to fall – which is often why the percentage is so much higher than a petrol or diesel car, which is typically far cheaper to begin with.
There’s still some hesitancy from buyers, with the sharp rise in electricity costs denting confidence with them earlier in the year, while the cost-of-living crisis has almost prompted consumers to stick with what they know. Many buyers are also aware of fast-improving technology and are cautious not to buy a car that’s ‘behind the times’, which is why more outdated electric cars like the Nissan Leaf and Renault Zoe have dropped so steeply in price.
Will used electric car prices continue to fall?
There are signs that there could be some recovery in the prices of used electric cars in 2024. Figures from Auto Trader show that the average retail value of used EVs has increased every month in October and November.
While all but one of the 10 top 10 used car price contractions in November 2023 were electric models, only two of the models hadn’t dropped in price in November on a month-by-month basis.
Of course, used car prices – especially for electric models – could drop once again if there is a huge influx of used electric being dispersed by leasing and finance companies if the demand hasn’t improved.
What are the best used EV deals available?
But all this can be good news if you’re looking to buy a used electric car as there are some superb deals available on secondhand and nearly-new EVs. Let’s take a look at some of the best deals around.
Audi e-tron GT
If you want a top-of-the-line electric car, you shouldn’t look further than the Audi e-tron GT. This sleek and sporty EV acts as the German firm halo electric model, and with its strong performance, 305-mile range and terrific build quality, it is an exceptional choice.
While a new e-tron GT will set you back almost £90,000, you can currently pick up a two-year-old example with less than 50,000 miles on the clock for just £55,000 – a huge saving.
Search for a used Audi e-tron GT
Volkswagen ID.3
The Volkswagen ID.3 is one of the most important new electric cars to launch in recent years, kickstarting VW’s EV offensive with this practical family hatchback. It’s modern inside and out, good to drive and comes with plenty of equipment as well, along with a 260-mile range in its standard configuration.
A new ID.3 will set you back £37,000, but thanks to heavy depreciation, you can pick up a three-year-old example from only £19,000.
Search for a used Volkswagen ID.3
Renault Zoe
The Zoe is one of those electric cars that’s now a bit behind the times, with Renault recently stopping orders for new versions. But if you’re not as bothered about the latest technology orthe quickest charging speeds, the Zoe has plenty to offer.
It’s easy and comfortable to drive, while is quite practical for a small EV. A new version of the Zoe has a list price of almost £30,000, but thanks to steep depreciation, a three-year-old example can be bought from only £10,000.
Jaguar I-Pace
The Jaguar I-Pace was one of the first electric SUVs to go on sale back in 2018 and has received only minimal updates since, meaning even older versions are as good as the brand-new model. Jaguar claims a range of just under 300 miles too.
A new I-Pace starts from £70,000, but massive depreciation means that you can pick up a 2019-registered example from just £22,000. That gets you an exceptional amount of car for the money.
Search for a used Jaguar I-Pace
Tesla Model 3
Tesla continues to be the most recognisable electric car brand, and right at the forefront of EVs with its fast and high-tech models. Our vote goes to the Model 3 – a more compact saloon, yet one that still offers plenty of space.
Given the Model 3 has been one of the UK’s most popular electric cars for several years, there are plenty of used models to choose from. A new version of this Tesla starts from around £40,000, but you can pick up a three-year-old example for half of that.
Search for a used Tesla Model 3