{"id":8349,"date":"2024-08-23T12:36:17","date_gmt":"2024-08-23T11:36:17","guid":{"rendered":"https:\/\/www.cars2buy.co.uk\/news\/?p=8349"},"modified":"2024-08-23T12:37:44","modified_gmt":"2024-08-23T11:37:44","slug":"affordability-used-electric-vehicles","status":"publish","type":"post","link":"https:\/\/www.cars2buy.co.uk\/news\/electric\/affordability-used-electric-vehicles\/","title":{"rendered":"The Affordability of a Used Electric Vehicle in 2024"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">How many times have you heard the words \u2018electric cars are the future\u2019? No matter where you look, it\u2019s clear that EVs are beginning to dominate the new car market. It\u2019s not just because of the <a href=\"https:\/\/www.autoexpress.co.uk\/tips-advice\/108960\/uk-2035-petrol-and-diesel-ban-what-it-and-what-cars-are-affected\">UK\u2019s proposed ban<\/a> on new petrol and diesel car sales, either: there are so many advantages to electric car ownership. The quiet and serene driving experience, for starters. The array of onboard gadgets. And, of course, the fact that there are absolutely zero tailpipe emissions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not hard to argue that EVs are enjoyable to live with and that they\u2019re a good thing for the planet &#8211; the advantages are clear. But few would contend that EVs are more affordable than their petrol and diesel counterparts. Historically, both EVs and hybrids have been consistently more expensive than conventional ICE (internal combustion engine)-powered vehicles, and this remains the case in the new car market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cast your mind back to when the first flatscreen LCD TVs came out, or the first games consoles. Back then, these now widespread items were new technology, and their price reflected that. Nowadays, they\u2019re much more attainable &#8211; and we\u2019re seeing a similar situation unfold with electric cars.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although new EVs are still pricier than their more traditional petrol and diesel-powered counterparts, this gap is closing &#8211; and on the used market, EVs are now more affordable than they\u2019ve ever been. Which brings us onto the topic of today\u2019s article: just how affordable are used EVs in 2024?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019re going to answer that question comprehensively below, explaining why prices are falling and what this might mean for the future of the electric used car marketplace. Then, we\u2019ll run through a handful of the <a href=\"https:\/\/www.cars2buy.co.uk\/news\/guides\/most-affordable-electric-suvs\/\">most affordable electric cars<\/a> to help you join in the EV revolution without breaking the bank.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-prices-are-falling\">Prices are falling<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The main thing you need to know is that, as of right now, the prices of used electric cars are falling. This doesn\u2019t apply to every make and model &#8211; there are plenty out there that still command a hefty premium &#8211; but broadly speaking, second-hand EVs are the cheapest they\u2019ve ever been.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Cap HPI, one of the UK\u2019s leading car valuation specialists, <a href=\"https:\/\/www.autocar.co.uk\/car-news\/electric-cars\/never-better-time-buy-used-ev-prices-dip-below-ice\">three-year-old electric cars are now 8.5% cheaper<\/a> than their equivalent petrol or diesel models &#8211; a shocking statistic considering the opposite is usually true. When vehicles reach four years old, the average price difference widens further still to 14%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The surprising statistics don\u2019t end there. According to Cap HPI\u2019s data, used EVs are worth half of what they were in 2022 on average. Even pristine, low-mileage examples are worth considerably less than they would have been just two years ago.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep in mind that, on the new car market, electric models are nearly always more expensive than equivalent petrol or diesel cars. So, why is the opposite true on the second-hand market?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-are-electric-cars-getting-cheaper\">Why are electric cars getting cheaper?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is yet another straightforward case of supply and demand. Chris Plumb, <a href=\"https:\/\/www.cap-hpi.com\/\">Cap HPI<\/a>\u2019s EV valuation expert, told Autocar magazine: \u201cEvery month we\u2019re setting new records on the monthly volumes of EVs that are coming into the market, which isn\u2019t a surprise, because everything comes back to the new car registrations from three or four years ago.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, new EV sales exploded around the time Covid-19 hit, with the majority of buyers choosing three or four-year lease periods. Now those lease periods have come to an end, there\u2019s only one place for the cars to go: the used market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A huge influx of used EVs coming onto the market at the same time has resulted in supply outstripping demand &#8211; and if there aren\u2019t enough buyers out there, dealers are forced to slash prices in order to shift all the second-hand EVs currently occupying their forecourts.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The incentives many manufacturers offer on brand-new EVs are only compounding the situation on the used market. Because new models are becoming increasingly affordable (especially on PCP or PCH contracts), second-hand models are less attractive than they would otherwise be.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-will-used-evs-go-up-in-value-again-nbsp\">Will used EVs go up in value again?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">So, there\u2019s an imbalance between supply and demand and a load of new vehicle purchase incentives which are currently suppressing the used EV market. If these factors were removed from the equation, would second-hand EVs jump up in value once again?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Probably, yes. If the Government (and manufacturers) gradually began withdrawing the incentives they\u2019re currently offering new car buyers, second-hand models would immediately become more attractive because of the difference in price. Plus, as more and more motorists <a href=\"https:\/\/www.cars2buy.co.uk\/news\/guides\/explained-the-cost-of-installing-an-electric-car-charger-in-2024\/\">make the jump from ICE cars to EVs<\/a>, demand for more attainable used models is only going to increase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI don&#8217;t think there has ever been a better time to buy an EV, because of the new car discounts that we&#8217;re seeing and how much value for money that going used offers,\u201d Plumb told Autocar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSome of these vehicles can&#8217;t get any cheaper, so we might find that they increase in value over time as consumer demand increases.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-should-i-be-concerned-about-residual-values\">Should I be concerned about residual values?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With the apparent volatility of the used EV market in mind, should you be worried about residual values when buying an electric car &#8211; be it new or used?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At this point, it\u2019s hard to say. We expect the used EV market to bounce back and stabilise once again, but it\u2019s difficult to predict how long this will take. As we get nearer to the UK Government\u2019s proposed ban on new petrol and diesel cars (which has been pushed back from 2030 to 2035), more and more motorists are likely to switch to EVs, bolstering residual values. However, if this 2035 deadline is pushed back once again, those currently planning to go electric might stick with their ICE vehicle, hampering the EV market once more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market volatility aside, there\u2019s no indication that EVs should lose any more value than their petrol or diesel counterparts in the long run. According to the AA, the average new car loses approximately 60% of its value in the first three years (assuming it covers 10,000 miles each year). Before the used EV market started to struggle earlier this year, electric models generally adhered to this 60% figure &#8211; they didn\u2019t lose any more value than their ICE counterparts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before EV sales took off, there were fears over batteries degrading after 5-10 years of use, hampering the car\u2019s range and dramatically affecting its second-hand value. But now EVs aren\u2019t the unknown entity they once were, these fears have begun to fade away. The oldest examples of Tesla\u2019s breakthrough Model S are now 12 years old, and many of them are still driving around fault-free on their original motor and battery. And with tech improving year by year, the lifespan and capacity of EV batteries is only set to increase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, in summary, EVs should have comparable residual values to petrol and diesel cars in the long run &#8211; but it might take a few years for the market to stabilise.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-should-i-lease-or-buy-an-electric-car\">Should I lease or buy an electric car?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This leads us nicely onto the topic of buying versus leasing. If you\u2019re worried about depreciation and don\u2019t want to risk your hard-earned cash on an EV that might lose a significant chunk of its value in just three years, you might want to consider leasing one instead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Personal contract hire (PCH) deals are a great way to avoid depreciation entirely. Instead of paying monthly to own the car (as you would with a PCP contract), PCH allows you to enjoy the car for a predetermined period of time (usually between two and five years) for a fixed monthly fee. When your contract ends, simply return your car and get yourself a new one!&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re interested in finding out more about the benefits and pitfalls of leasing an EV, <a href=\"https:\/\/www.cars2buy.co.uk\/news\/guides\/the-pros-cons-of-leasing-an-electric-car\/\">check out our dedicated guide<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-it-worth-buying-new-instead-of-used\">Is it worth buying new instead of used?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">That depends on your budget and what you\u2019re looking for. At the moment, used EVs are more attainable than they\u2019ve ever been &#8211; so if you\u2019re simply looking for the cheapest way into a zero-emission car and want to buy it outright or trade in your current vehicle, the second-hand market should be your first port of call.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A number of manufacturers are still offering extremely attractive deals on brand-new EVs, though &#8211; they\u2019re more affordable nowadays than you might expect. The best way to work out what you can afford is to shop around; if you\u2019re planning on leasing your next car, head over to our <a href=\"https:\/\/www.cars2buy.co.uk\/electric-car-leasing-deals\/\">electric car leasing<\/a> page to compare deals from manufacturers and dealerships across the UK.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are other benefits to buying a brand-new EV, too. Not only will you be the first owner and have the opportunity to customise the car to your liking, you\u2019ll get to enjoy the very latest model with the best possible performance and the most advanced tech available.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-affordable-models-to-look-out-for\">Affordable models to look out for<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ve already written a dedicated guide to the <a href=\"https:\/\/www.cars2buy.co.uk\/news\/electric\/most-affordable-electric-cars-in-the-uk\/\">most affordable electric cars in the UK<\/a>, but the market is constantly shifting. As of summer 2024, here are some of the best affordable EVs out there.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-mg5\">MG5<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re searching for a practical, no-nonsense family car, the MG5 is a worthy choice. Boasting a 250-mile range, a spacious boot and a feature-packed infotainment system, this five-seater estate car can handle everything from the commute to family holidays.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-nissan-leaf\">Nissan Leaf<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">It might be a little dated now, but the Nissan Leaf was a pioneer &#8211; and remains one of the best-selling EVs out there. The second-generation version was much improved over the first, offering a longer range, a more accommodating interior and improved performance.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-peugeot-e-208\">Peugeot e-208<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Although it shares the same platform as the Vauxhall Corsa-e, the Peugeot e-208 is a more composed, more refined and more upmarket-feeling choice. With a claimed 217-mile range and a cosseting ride, this supermini feels much more expensive than it actually is.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-volkswagen-id-3\">Volkswagen ID 3<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t let the unconventional styling of the ID 3 fool you: this is a practical family hatch that\u2019s every bit as easy to live with as a Golf. With a similarly-sized boot and plenty of leg and headroom, the ID 3 is strong across the board &#8211; and the cachet of the VW badge certainly helps.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-renault-zoe\">Renault Zoe<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Having won over the motoring press from the get-go, the Renault Zoe will go down in history as one of the first EVs to genuinely take the fight to petrol and diesel power. Although it\u2019s a little outdated (and outpaced) by some rivals in 2024, it still represents exceptional value on both the new and used market.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-kia-e-niro\">Kia e-Niro<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">With an impressive 289-mile range, a class-leading seven-year unlimited mileage warranty and a spacious, generously-equipped interior, the Kia e-Niro is the latest in a long line of success stories for the South Korean brand. Although it\u2019s not the cheapest option, the e-Niro delivers where it matters most.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-fiat-500-electric\">Fiat 500 Electric<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">In terms of style and character, the ever\u2013adorable Fiat 500 Electric beats its rivals fair and square. It\u2019s more than just a pretty face though, with plenty of useful tech (like auto wipers and keyless entry) and a 199-mile range. Not bad for a compact city car.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-check-out-our-car-leasing-deals-today\">Check out our car leasing deals today<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There you have it, our round-up of the used electric vehicle market in 2024. If you\u2019re currently in the market for your next car and aren\u2019t sure where to start, Cars2Buy is the place to be.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our site allows you to compare thousands of <a href=\"https:\/\/www.cars2buy.co.uk\/new-cars\/\">new car leasing deals<\/a> from the nation\u2019s leading manufacturers and dealers, all in one place. Simply input a make and model to get started.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How many times have you heard the words \u2018electric cars are the future\u2019? No matter where you look, it\u2019s clear that EVs are beginning to dominate the new car market. It\u2019s not just because of the UK\u2019s proposed ban on new petrol and diesel car sales, either: there are so many advantages to electric car [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8350,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[533,13,7],"tags":[],"class_list":["post-8349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-electric","category-guides","category-industry-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Affordability of a Used Electric Vehicle in 2024 | Cars2Buy<\/title>\n<meta name=\"description\" content=\"Discover the affordability of used electric vehicles in 2024. Explore budget-friendly options, benefits and cost-saving tips for eco-friendly driving.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cars2buy.co.uk\/news\/electric\/affordability-used-electric-vehicles\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Affordability of a Used Electric Vehicle in 2024\" \/>\n<meta property=\"og:description\" content=\"Discover the affordability of used electric vehicles in 2024. 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