Affordable pure electric vehicles (EVs) are moving into the used car sector’s fast lane as consumers show less enthusiasm for a new crop of expensive zero-emissions cars.
Analysis from Cap HPI has shown that early EVs are breaking away from their newer counterparts when it comes to consumer demand – creating a “two-speed market”.
Values for models under £17,000 at one year and 10,000m have strengthened over the last 24 months while premium BEVs are weaker, it has reported.
Models including the Citroen C-Zero (11-19) and Peugeot iON (11-19) have seen residual values improve over the last two years.
In November 2017 a one-year-old and 10,000m Citroen C-Zero was worth around £6,000 and today a similar example is valued at over £11,000.
Other models showing similar behaviour include the Peugeot iON and Renault Zoe, according to Cap HPI, with strong performance amid limited volumes in both the trade and retail market.
However, Cap HPI’s senior valuations editor, Chris Plumb said that premium BEVs remained a challenge due to the high cost new which translates to the vehicle looking expensive when entering the used market.
Models such as Jaguar I-Pace (18-), Audi E-Tron (18-) and Tesla Model X (16-19) have all seen values reduce over the past few months.
“Today a BMW i8 (13-) coupe is worth around £20,000 less at one year old and 10,000m than it was was two years ago. Equally the Jaguar I-Pace (18-) has seen values drop around £10,000 over the last 12 months,” said Plumb.
“It’s clear that there is a growing market for a used BEV at a particular price point perhaps for use as a second car for city commutes. We expect to see demand continue to increase as clean air zones are rolled out across the country and the range of product widens.”
But he added: “The premium models represent a different proposition, often with longer ranges and more features, the high purchase price at new is yet to translate in the used sector.
As volumes of BEVs increase in the market some mainstream models have seen pressure and values drop.
The VW eGolf (14-) and Nissan Leaf (10-18) have seen values decline following an increase in volumes of two-year-old product, in particular, those with a 30KWh battery.
According to Society of Motor Manufacturers and Traders (SMMT) data, the rapid adoption of alternative fuelled vehicles accelerated in October with all forms of hybrid and battery vehicles reaching a 13.4% share of the new market.
Plumb said: “We are in a transformational period for the alternative fuelled vehicle with the rapid growth of new car volumes and greater choice in the used sector.
“The roll-out of charging infrastructure and increased battery ranges will only accelerate the adoption of these vehicles. Over time, used values have stabilised and now perform against the same market pressures as their petrol counterparts.
“As supply and demand shift we see pressure on some models and, in some cases, values appreciate on others. We expect dozens of new models in 2020 and it will only bring more choice to the used buyer.”