New figures from Auto Trader show that electric cars lose up to half their value after just three years, far exceeding the fall in the value of conventional cars, the Telegraph writes.
Auto Trader is the UK's largest car trading site, and its analysts have concluded that electric car drivers are facing “unsustainable levels of depreciation” of their cars. In a company research report, it appears that prices of used electric cars have fallen by 23 percent in the past year alone.
40 percent higher consumption
According to Auto Trader, an electric car bought for £50,000 this year can expect to lose £24,000 over the next three years. While for petrol cars, the corresponding drop in value is £17,000, meaning the price drop for electric cars is 40 per cent higher than for conventional cars.
However, the advantage of electric cars is that they sell five days faster than gasoline cars.
Used electric car values fell dramatically the following year after delivery problems were resolved. In addition, higher electricity prices and lower oil prices also affected demand.
– It is still unsustainably low
Furthermore, the automotive website warns, “residual values of electric vehicles remain unsustainably low.” They believe used electric car prices will come under further pressure this year as leasing contracts expire and electric car manufacturers cut prices for new cars, the Telegraph writes.
“With more than 800,000 new electric cars registered between 2020 and 2023, supply in the used car market will only increase in 2024, and if demand does not keep pace, the value of electric cars could decline further, undermining consumer and dealer confidence.” Auto Trader writes in the research report.
In addition, a wave of Chinese cars is also expected, which will increase price pressures on the market. By 2030, Auto Trader expects one in six electric cars sold in the UK will be manufactured by Chinese companies.
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