Premium EVs depreciate faster than cheaper ones

Residual values for used electric vehicles (EVs) are progressing at different rates with prices for cheaper models strengthening in the last 24 months.

Values for models under £17,000 at one year and 10,000 miles have seen an uplift while those for premium EVs are weaker.

Data from Cap HPI shows that models including the Citroen C-Zero and Peugeot iON have seen residual values improve in the last two years. In November 2017, a one-year-old and 10,000 mile Citroen C-Zero was worth around £6,000 and today a similar example is valued at more than £11,000.

Premium EVs remain 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, Audi E-Tron and Tesla Model X have all seen values reduce in the past few months.

Chris Plumb, senior valuations editor at Cap HPI, said: “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.

“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.”

A BMW i8 coupe is worth around £20,000 less at one year old and 10,000 miles than it was two years ago. Equally the Jaguar iPace has seen values drop by around £10,000 in the last 12 months.

As volumes of EVs increase in the market some mainstream models have seen pressure and values drop. The VW eGolf and Nissan Leaf have seen values decline following an increase in volumes of two-year-old product, in particular, models with a smaller battery.

“Over time, used values have stabilised and now perform against the same market pressures as their petrol counterparts,” Plumb said.

“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.”