EV Second-Hand Market Surges: August 2024
The UK’s electric vehicle (EV) market is buzzing, and it’s not just about the shiny new models rolling off production lines. The second-hand car market, often overlooked, is where the real action is happening.
Reports from the Society of Motor Manufacturers and Traders (SMMT) and Cap HPI reveal a significant uptick in the popularity of used EVs. Used electric vehicle sales increased by 52.6% between April and June.
So, what’s fueling this trend, and what does it mean for the average driver?
Why Used EVs are Flying Off the Forecourts
Let’s start with the obvious: we’re all more eco-conscious these days. Whether it’s the headlines about wildfires or the chatter about government green targets, environmental concerns are pushing more people to consider electric vehicles. But it’s not just the planet benefiting – drivers are too. The growing availability of charging points across the UK makes the switch to electric less daunting. Who doesn’t like the idea of never having to visit a petrol station again?
In the second quarter of 2024 EVs achieved a record market share at 2.4%, up from 1.7% in the same period last year. Sales of plug-in hybrids (PHEVs) and hybrids (HEVs) also increased to 25.2% at 21,580 units and 43.6% with 78,782 units respectively. Traditional fuel types clearly still dominate but the trend towards EVs is building momentum.
The move towards EV sales isn’t just a flash in the pan. It’s part of a broader shift as the market matures. More new EVs on the road mean more second-hand options a few years later. And with this increased supply, buyers are spoiled for choice. It’s no longer just about making a statement with a new Tesla; it’s about finding a practical, affordable way to drive green.
Price Drop: The Game-Changer
Here’s where it gets interesting. Cap HPI reports that used EVs are often cheaper than petrol or diesel equivalents. Let that sink in for a moment. Electric cars, once the domain of the eco-elite, are now within reach for many more people. And it’s not just about the sticker price. Used EVs are cheaper to run—no more paying through the nose for fuel, and with fewer moving parts, maintenance costs are a fraction of what you’d shell out for a traditional car.
Cap HPI’s data shows certain used electric vehicles are now priced 8.5% and 14% below their equivalent petrol and diesel models once they reach 3 and 4 years of age. This has contributed to sales of used electric cars being 71% higher in the first quarter of 2024 than in the same period last year.
New EVs tend to be significantly pricier than the nearest petrol and diesel version. Yet used EV values have dropped steeply in the last couple of years to offer drivers potential far greater value. Prices of used EVs for cars at the same age and mileage point on average have halved in value since September 2022.
Chris Plumb, EV specialist at Cap HPI, said: “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.”
Premium marques and models such as the Porsche Taycan, Jaguar i-Pace, Mercedes EQC and Tesla Model X are far more affordable at this stage in their life cycle than many buyers would have expected.
This affordability is a real game-changer. It’s opening the market to those who might have hesitated to buy new because of the higher upfront costs. Now, budget-conscious buyers can get behind the wheel of an EV without breaking the bank, enjoying the perks of lower running costs and contributing to a cleaner environment.
What This Means for the Car Market
So, what does all this mean for the car industry? In a word: transformation. As more drivers turn to EVs, the demand for petrol and diesel cars is set to decline. Dealers who once filled their lots with traditional vehicles will need to pivot, offering a wider range of electric options and beefing up their knowledge on the ins and outs of EV ownership.
But it’s not just about the cars themselves. The entire ecosystem around vehicles is changing. Consider the growing need for EV maintenance specialists or the increasing demand for home and public charging stations. The rise of used EVs is not just reshaping what we drive but how we support those vehicles on the road.
Looking Ahead: The Road to a Greener Future
The second-hand EV market in the UK isn’t just thriving; it’s paving the way for a more sustainable future. For drivers, it means more choices, better deals, and the opportunity to be part of the green revolution without the premium price tag. As the market evolves, used EVs are set to play a crucial role in making electric driving the norm rather than the exception. Maybe the future’s bright – and electric?
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