Rate of decline in used EV values ‘shows signs of improvement’

One-in-10 battery electric vehicles (BEVs) at 36 months experienced an increase in value in July, according to new analysis from Cap HPI.

This was a slight improvement compared to the previous month when only 7% saw values rise.

Some 20% of the models remained at the same level, while 70% still suffered a decrease in value.

Examples of BEV models that saw values increase at the same age point, included the Polestar 2, up 2.3%, the Tesla Model X, up 2%, and the Kia E-Niro, up 2% or about £240.

Models that remained level were the Cupra Born, Tesla Model Y, and the VW ID3

Models that experienced the most significant negative adjustments were the VW e-Up, which had the largest decrease of 5.1%.

Jeremy Yea, senior valuations editor at Cap HPI, said: “Battery electric vehicles have again experienced more pressure than other fuel types this month. However, the decline of just 1% or circa £135 at three years and 60,000 miles is consistent with more seasonal movements for this time of year.

“The rate of decline in BEV values has shown signs of improvement, with the 1% movement being the strongest month for BEVs so far this year.”

Overall, July saw average used values decrease by 0.4% or around £70 at three years and 60,000 miles.

The average movement since 2012, when Cap Live was first introduced, is a 1.1% decline. However, careful examination of the data shows a mixed market.

At the one-year age point, values dropped by 0.6% or c.£190. At the older age points, cars were again only marginally affected, dropping by 0.6% or £55 at five years old and 1.6% or £60 at 10 years old.

Mainstream sectors were more mixed, with lower medium or C segment cars seeing the biggest overall drop of 0.9%. This was closely followed by sports, which fell 0.8%, and city car and supermini both fell by 0.6%.

The strongest mainstream sector was SUV, which only dropped by 0.3%.

Yea said: “The data highlights the strength of the used market as a whole and especially for the SUV sector, which makes up nearly 60% of our used sold data up to three-years-old.”

Petrol vehicles fell by 0.4%, diesel was marginally down by 0.2%, hybrids (HEVs) fell by 0.4%, and plug-in hybrids (PHEVs) were also down by 0.6%.

All fuel types outperformed the seasonal average monthly reduction.

The Dacia Duster Diesel and the Range Rover Sport Petrol Hybrid saw increases of 3% and 4%, respectively.

The BMW X4 Diesel (4%/£1,170), Nissan Qashqai Diesel (3%/£365), and the Toyota RAV4 Hybrid (2%/£400) also experienced value increases.

Models that remained level in value this month include the Peugeot 508 Diesel, Mini Countryman Petrol, BMW 2 Series Gran Coupe Petrol, Mecedes GLA Diesel and the KIA Sportage Petrol.

“August will likely see more retail consumers prioritising their holidays over purchasing a new or used car, so consumer buying activity could be a little more muted during the summer holiday period,” explained Yea.  

“This may not dampen dealers’ appetite to buy used stock when given the chance. With fewer used cars likely to be returned to the market in the run-up to the September registration month, this could keep things slightly more positive than the usual seasonal average movement.”