Used electric cars are now cheaper than their internal combustion engine (ICE) counterparts, according to a new report from market experts.
On average, three-year-old electric vehicles are 8.5% less expensive than their petrol equivalents, and by the fourth year, that difference nearly doubles, based on data from valuation experts at Cap HPI.
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This shift means buyers have more incentive to choose green, especially since running costs for EVs are generally lower than those for similarly aged petrol-powered cars.
The report coincides with a 50% jump in used EV sales between April and June of this year, compared to the same period in 2023. While new EVs typically cost between £5,000 and £10,000 more than new petrol or diesel cars, their rapid depreciation means prices for second-hand electric cars have dropped significantly over the past two years, offering great deals for buyers.
Cap HPI data shows that by the three-year mark, used EVs are around 8.5% cheaper than petrol and diesel vehicles, and by year four, they’re 14% less expensive. This trend has led to significant savings for models like the Jaguar i-Pace, Mercedes EQC, and Tesla Model X—some are now over £20,000 cheaper than they were in the summer of 2022. For a Porsche Taycan, the savings can be as much as £40,000.
Chris Plumb, an EV specialist at Cap HPI, noted "The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices."
The used EV market is booming, with 46,773 electric vehicles sold in the second quarter of this year—a 52.6% increase from the previous year, according to the Society of Manufacturers and Motor Traders (SMMT). EVs now make up 2.4% of the used car market, the highest share ever, up from 1.7% last year.
Mike Hawes, SMMT's chief executive, called it "encouraging" to see the market recovering, attributing the increase in choice and affordability to a surge in new car demand.
Auto Trader data shows that price parity between three-year-old battery electric vehicles (BEVs) and petrol models has been reached, even though new EVs still cost about 33% more than new combustion cars. In June, three-to-five-year-old electric cars sold a week faster than the market average, and searches for these vehicles were up 175% year-on-year, compared to a drop in searches for petrol and diesel cars.
Richard Walker, director of data and insights at Auto Trader, highlighted that in June, a three-year-old Tesla Model 3 averaged £22,400, while a BMW 3 Series of the same age was nearly £2,000 more expensive. Similarly, a three-year-old Jaguar I-Pace EV was priced at £23,400, compared to a petrol Jaguar F-Pace at £33,500—more than £10,000 higher.
