According to industry valuation expert Cap HPI, a three-year-old, 30,000-mile EV’s trade price tends to be, on average, around 10 per cent less than a like-for-like petrol or diesel equivalent – and that’s not even taking into account the long-term savings such as less-regular servicing and lower refuelling costs (provided you can charge at home). Yet as fuel prices soar and more drivers realise the benefits of EVs, time may be running out if you wish to maximise savings.
Carwow figures show that EV prices have bounced back from the usual February sales slump to a much greater degree than other fuel types, now sitting at an average of around £26,000. As used values become more robust and new EVs are priced more in-line with ICE alternatives, the benefits of buying a second-hand electric vehicle start to diminish.
3. Aim for the ELUSIVE depreciation sweet spot
Car depreciation isn’t linear; vehicles tend to lose value much more quickly early on in their lives, slowing down as they get older. So, with the amount of maintenance required typically rising as a vehicle gets older and develops more problems, finding that sweet spot can mean not only a low up-front price, but also reasonable running costs.
But where is that spot? Well, after a new car’s first three years and 36,000 miles, valuation intelligence firm VIP Data estimates that it is projected to lose 65 per cent of its initial asking price; 15-30 per cent of that can be in the first year alone. Things start to taper off as the years progress, though, so snapping up something between two and five years old will almost always represent the best value for money. Just be aware that many manufacturer warranties run out after three years, so you may want to consider extending your cover for peace of mind.
4. Hold off and buy when the time is right
Just like booking a holiday or theatre tickets, prices for used cars fluctuate throughout the year, making some times better to buy than others. Insights firm Cox Automotive tells us that used car values can fluctuate by anything between one and three per cent per month, with the greatest dips typically occurring towards the end of the year.