Used EV bargains? Data suggests EVs are cheaper than petrol cars on the used market

Electric cars are now cheaper than equivalent petrol or diesel cars on the used market, according to new data from industry analysts Cap HPI. That may come as a surprise, as electric cars often cost considerably more than their petrol or diesel counterparts when brand new. However, it appears that EVs lose their value at a quicker rate than other cars, meaning that used car buyers could scoop up a bargain if they’re willing to switch to an electric car.

Cap HPI, an automotive market data research organisation, has published new findings revealing that electric cars are, on average, 8.5% cheaper to buy than a similar petrol or diesel car on the used market after three years. In the real world, a three year old electric car could cost around £2,550 less than an equivalent used petrol car costing £30,000.

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That price disparity increases once an EV is four years old, with the average electric car costing 14% less than a petrol or diesel equivalent. In the same scenario, a four-year old EV would cost £4,200 less than an equivalent £30,000 petrol car. Of course, these values are averages, and the price differences will vary from model to model.

That price gap is fuelled by the rate at which EVs depreciate, or lose value – a rate that appears to be increasing. Cap HPI says that the average used electric car is worth half as much today as an equivalent used EV just two years ago, a difference that can equate to as much as £40,000 for some expensive models. That’s a dramatic loss in value, but it means that there are plenty of deals to be found on the used market.

What does this mean for car buyers?

Many car buyers are put off electric cars due to their high price tags when new, especially when compared to their petrol and diesel equivalents. For example, a Lexus UX Hybrid currently costs around £35,000, while the electric version costs over £47,000. For many car buyers, that’s a difference they’re not willing to pay.

However, it appears that the story is reversed when shopping on the used market. Many electric models are cheaper to buy than an equivalent used petrol car, especially when it comes to premium models. Rapid developments in EV technology, combined with uncertainty around the longevity of used EV batteries, seems to be keeping used electric car prices low – bad news for those who bought a brand new EV, but great news for those who are looking to pick up a used bargain. 

Of course, that’s before considering the savings in running costs that EVs can deliver. A used electric car could make a lot of financial sense if you’re able to access low-cost home charging, although the lack of affordable public charging infrastructure in the UK poses an issue for those who can’t charge at home.

Read our guide to charging without a driveway if you’re considering an EV without access to off-street parking