Used EVs are on average £2,500 cheaper than an equivalent petrol car
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Motorists have a very big choice to make next time they buy a second-hand car: do they stick with the combustion engines they know or make the transition to an EV?
With sales of new electric vehicles at a record high, the volume entering the used market is growing dramatically - as is the quality of model and typical range available between charges.
But while many remain hesitant about switching, due to concerns about charging and range anxiety, there is now a significant financial gain when choosing a battery car over an equivalent petrol.
A study has found that used combustion engine models are on average £2,560 more expensive than equivalent electric models of the same age and mileage from the same manufacturer - a difference of 10 per cent.
But there's very much a vehicle age sweet spot when an EV represents much better value as a used motor.
CarGurus, the second-hand car sales platform that conducted the study, concluded in its report that the 'days of used EVs costing significantly more than fossil fuel models are over'.
We reveal examples of second-hand electric models with values well below a performance-equivalent petrol from the same maker.
A study has found that used combustion engine models are on average £2,560 more expensive than equivalent electric models from the same manufacturer - a difference of 10%. Will this financial gain be enough incentive to Britons to switch to battery power?
The analysis looked at the average second-hand value of EVs against a like-for-like fossil-fuelled model from the same brand offering similar performance, to determine which option provides the best value.
In all instances, the electric choice would have cost significantly more when new, but steep depreciation - especially in the first 12 months - saw the value difference wiped out before these cars even reached a year old.
Of the models reviewed, the EV that presented the greatest value against its internal combustion engine (ICE) alternative was the 2021 Mazda MX-30, available for 28 per cent less than the ICE alternative CX-30 from the same year (an average of £12,180 vs £16,960).
And Mazda isn't the only brand where a used EV appears better value.
A 2021 electric Jaguar I-Pace was 22 per cent cheaper second hand than a petrol F-Pace from the same model year (£25,629 vs. £33,012).
Meanwhile, a 2022 Skoda Enyaq EV was 19 per cent less than the 2022 Skoda Kodiaq petrol (£23,056 vs. £28,307).
Similarly, the 2021 Renault Zoe EV is 16 per cent cheaper than a petrol Clio, and the 2021 generations of Volkswagen's ID.3 and ID.4 are on the market for an average 14 per cent and 8 per cent less than the respective 2021 generation Golf and Tiguan.
A 2021 electric Mazda MX-30 (left) with average mileage is said to be worth £12,180 today. A 2021 petrol Mazda CX-30 (right) is valued at £16,960 - a 28% difference
The research suggests that customers looking for the best value used cars should opt for a three to four-year-old EV, as this is the point when an EV's value is most likely to fall below that of an equivalent ICE model.
In addition, CarGurus explored the typical mileage of models listed on the platform and found that, on average, EVs had 18 per cent fewer miles (equating to 3,252 miles) than the comparable ICE models, further adding to their appeal.
The greatest disparity was between the electric Volkswagen ID.3 versus the combustion engine Golf, where the 2024 generation's average mileage is 44 per cent lower (2,860 vs 5,151 miles).
The UK's automotive trade body, the Society of Motor Manufacturers and Traders, recently published used car sales for 2024 highlighting that more used EVs were sold than ever before, with figures up 57.4 per cent versus the year previous.
The quality and ranges of the EVs entering the second-hand market are ever improving, too, meaning drivers can benefit from getting their hands on used battery cars with over 250 miles of driving distance between charges for a fraction of what one would cost new.
A 2021 electric Jaguar I-Pace (left) is now 22% cheaper second hand than a petrol F-Pace from the same model year with comparable mileage on the clock (£25,629 vs. £33,012)
A 2022 Skoda Enyaq EV (left) is today 19% less expensive than the 2022 Skoda Kodiaq petrol (right)
'The days of electric cars costing significantly more than their petrol or diesel equivalents are over - at least as far as the used market is concerned,' says Chris Knapman, CarGurus editorial direction.'
'Our research shows just what good value some used EVs currently represent, including long-range models such as the Skoda Enyaq and Jaguar I-Pace.
'While it's no secret that, right now, electric vehicle ownership won't work for everybody, it is equally true to say that it can be a fantastic fit for a lot of motorists.
'With the potential for thousands in savings over an equivalent petrol or diesel model, combined with lower running costs, there's never been a better time to consider EVs on the used market.'
An electric Renault Zoe (left) might have been around £10k pricier than a petrol Renault Clio when new in 2021, but today the EV is valued some 16% lower
Another example of an EV being cheaper used than its petrol equivalent from the same brand is the VW ID.3 (left) versus the Golf hatchback (right)
An exclusive EV vs petrol report by This is Money last year compared the average residual value over time of EVs versus equivalent petrol and hybrid models from the same brand, with electric cars suffering the bulk of their depreciation in the first 12 months.
In all the cases we examined, this dropped the used price of the EV below the second-hand value of a one-year-old petrol model.
Thereafter, the year-on-year depreciation is generally at the same rate, meaning EVs will match their combustion counterparts and won't continue to dramatically fall in price over the following years.
Dylan Setterfield, head of forecast strategy at cap hpi who ran the data for This is Money, told us: 'Surveys of used car buyers still reveal the price of EVs as being one of the main reasons why drivers are not switching to electric.
'What many don’t realise is, that not only are the vast majority of models cheaper than petrol or diesel equivalents, and sometimes by thousands of pounds.
'There is also a significant cost of ownership saving in terms of running costs, especially, but not exclusively, if drivers are able to charge at home.
'Prices have already come down so far that many models look fantastic value for money, and while this has stimulated demand for those in the know, the majority of used car buyers are completely unaware of the thousands of pounds they could be saving themselves.'
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