Used electric car prices plunge in March – some are EVs are down 30%

The second-hand cars that are falling most in value compared to a year ago have been revealed – and if you own an electric vehicle, you might want to look away now!

Used car valuations expert Cap HPI has provided exclusive data showing the top 20 second-hand car price fallers in March.

The list is exclusively made up of electric cars, with some plummeting in value by as much as 30 per cent versus a year ago.

Cap HPI also listed the 20 motors that have gone up in value most dramatically compared to March 2022 – and there is only one EV in the ranking, suggesting that demand for battery cars is waning.

Check the list of the 20 biggest price risers from last month to see if the motor parked on your driveway features.

Second-hand electric vehicle prices plunge: The list of the 20 used models that have fallen most in value year-on-year in March are exclusively EVs. Prices have been tumbling since October – we reveal the biggest decline…and explain why the market is turning on battery cars

Cap HPI’s data is based on the average value of a three-year-old car with 30,000 miles on the clock in March 2023 compared to what a three-year-old version of the same car with matching mileage would have sold for in the same month in 2022.

This provides a clear understanding of how demand is changing for particular vehicles – in this case, a huge decline in consumer appetite for second-hand electric cars.

Below we have provided an in-depth look at the 10 biggest fallers, and included an overview of the models in positions 11 to 20. 

And every one of them is a battery electric vehicle.

We’ve asked Derren Martin, Cap HPI’s director of valuations, to explain the five main reasons for why second-hand EV prices are going into freefall and where this leaves the used car market in 2023.

And scroll to the bottom of the page to find the 20 biggest used car price risers in March…

THE 20 BIGGEST USED CAR PRICE FALLERS 

10. Audi e-tron Sportback (2019-2023)

The Audi e-tron Sportback is the German brand’s hulking electric SUV with a coupe-like design. Average prices for three-year-old cars with 30,000 miles on the clock are down 23.3% in March 2023 compared to the same month in 2022

Tenth in the list of the biggest used car price fallers is the electric Audi e-tron Sportback – a svelte, coupe-like SUV with battery power.

A three-year-old model with 30,000 miles in March 2022 would have sold for an average of £53,200. Fast forward 12 months and a three-year e-tron Sportback with that mileage is worth around £12,500 less.

That’s a price drop of almost a quarter in the space of 12 months. 

9. Peugeot e-2008 (2019-present)

Peugeot’s e-2008 is one of the more affordable electric family cars on the market. And in March, it was far less expensive as a used option with average prices down almost a quarter

The e-2008 is the electrified version of Peugeot’s compact crossover that has been in showrooms since 2019.

Average sale prices for three-year-old models that have covered 30,000 miles have fallen by almost a quarter in March 2023 compared to the same month a year ago.

Buyers forked out £16,225 for a three-year-old, 30,000-mile e-2008 on average last month. If they had bought the same aged car with matching mileage a year earlier it would have cost them an extra £5,300, says Cap HPI. 

8. Volkswagen e-Golf (2014-2020) 

The VW e-Golf was a relatively short-lived fully-electric version of the popular family hatchback that eventually made way for the current ID.3 EV. It has gone from being a high-demand new model a few years ago to a second-hand option that is 26.7% cheaper than it was in March 2022

Volkswagen’s e-Golf was its electric family hatchback before the arrival of the ID.3. 

The popularity – and improved range and all-round performance – of the ID.3 might go some way to explain why average sale prices for this particular car have dipped by over 26 per cent in the last year.

Today, you will pay £13,850 for a three-year-old e-Golf with 30,000 miles on the clock. If you had bought a car matching that criteria in March 2022, it would have cost £5,050 more, with average sale prices that month of £18,900. 

7. Hyundai Ioniq Electric (2016-2022) 

Hyundai has stopped producing the Ioniq Electric family car but there are plenty on the second-hand market. This might explain why prices for three-year-old cars with 30,000 miles are down 26.8% in March, a £5,000 fall in value

Having started to look a little long in the tooth in recent years, Hyundai made the executive decision to discontinue the Ioniq Electric in 2022 to make way for its latest EV models.

Still, if you’re in the market for an electric family car with a decent range, it might make a strong second-hand option.

And prices today are far lower than they were a year ago. While a three-year-old Ioniq Electric with 30,000 miles on the odometer would have cost almost £19,000 in March last year, the average sale price of cars of the same age and mileage last month was just £13,900. That is a price fall of 26.8 per cent. 

6. Tesla Model 3 (2019-present)

Despite being the second best-selling electric car last year, used examples of the Tesla Model 3 are falling in value quite dramatically. This is partly down to the US brand slashing the price of its new vehicles, which in turn has forced second-hand prices lower

Despite being the second best-selling EV of 2022 (behind the Model X), the Model 3 is suffering a sharp fall in used values.

This has not been helped by Tesla’s decision to persistently slash the price of brand new examples in an effort to revive demand, with the knock-on effect driving down the value of used versions.

Cap HPI says a three-year-old Model 3 with 30,000 miles on the clock in March 2022 would have sold – on average – for almost £39,000. Last month, a car of that age and mileage was changing hands for just £28,300 – a decline in price of more than £10,500. 

5. Audi e-tron (2018-2023) 

The e-tron SUV is Audi’s first all-electric production car built from the ground up to be powered exclusively by batteries. Values are on the slip, with an average three-year-old example worth 28% less in March 2023 than in 2022

Audi’s e-tron SUV is one of its earliest electric cars that is built from the ground up to be a zero-emission model. 

While it offers premium luxuries, this does not seem to be generating much demand. In fact, average prices for this car are down 28 per cent in the last 12 months.

The average sale price of an e-tron last month was £31,588. That is a snip compared to a three-year-old example with 30,000 miles on the odometer in March 2022, which would have sold for £12,250 more a year ago. 

4. Nissan Leaf (2017-present) 

The Nissan Leaf – which is assembled at the Sunderland factory – is another affordable EV that’s suffering the lack of consumer appetite for battery cars. Average prices are down 28.3% in March, according to Cap HPI

Nissan’s Leaf is one of the best-selling EVs built in UK. Last year it was the fifth best-selling electric car in Britain, so you would think that demand is pretty high.

But that is not reflected in the average used values of the Leaf, which are down more than 28 per cent in March 2023 compared to 2022.

A year ago, motorists buying a three-year-old Leaf that had covered 30,000 miles would have spent almost £20,000. For a car of the same age and mileage last month, the average sale price was just £14,344 – some £5,600 less. 

3. Renault Zoe (2019-present) 

This list of the top 20 fallers is dominated by large, luxurious and expensive electric models. But a smaller car features at number three – the Renault Zoe. The battery-powered supermini has seen average prices fall 28.5% year-on-year in March

If you are in the market for a small electric run-around, you will likely have a Renault Zoe on your shopping list.

The car was improved in 2019 with extra range per battery charge.

But prices have taken a sharp dip in the last 12 months, falling 28.5 per cent.

The average sale price of a second-hand, three-year-old, 30,000-mile Zoe last month was just over £11,600. For a car of that age and mileage in March 2022, you would have needed to hand over nearly £16,300, Cap HPI says. 

2. Jaguar I-Pace (2018-present)

Launched some five years ago, the Jaguar I-Pace is already starting to show its age in a fast-developing EV market. Second-hand prices have crashed by 28.7%, meaning buyers can get their hands on a three-year-old example with 30,000 miles on the clock for just over £30,000 today

Jaguar has the intention of becoming an all-electric premium car maker in the next three years, but at present it sells just one electric vehicle – the I-Pace. And having launched in 2018, it is already starting to show its age against more capable battery-powered rivals.

That might explain why used values are taking a downward turn, falling by 28.7 per cent, which, in monetary terms, is a price difference of almost £12,500 in just one year.

Average sale prices of three-year-old I-Paces in March 2022 was £43,167. Last month, one of that age and with the same – 30,000 – mileage was selling for £30,750. 

1. Tesla Model S (2014-present) 

With Tesla focussing production outputs on the Model 3 and Model Y in recent months, you would think demand for second-hand examples of the bigger Model S would be increasing. But average prices are down more than 30%

The biggest price faller of all is Tesla’s Model S – its oldest mainstream model, which has been on sale in the UK since 2014, though with various upgrades in its lifecycle.

Tesla has paused production of these cars for some time, which might make you think that demand for used Model S cars would go up. But the opposite has happened.

Average sale prices for three-year-old examples with 30,000 miles on the clock have dropped from £63,275 in March 2022 to just £43,875 last month. That is a nosedive of 30.7 per cent, translating to a difference in price of £19,400.

WHY ARE USED ELECTRIC CAR PRICES FALLING?

Derren Martin, Cap HPI’s director of valuations, says a ‘relative lack of desire’ for second-hand electric vehicles has been a common theme since October 2022.

He puts this down to five key reasons:

Derren Martin, director of valuations at cap hpi, explains there are five main reasons for why used EV prices are plummeting as of late, including some big declines in March

1. A rising stock of second-hand EVs

‘The main reason second-hand EV prices are falling is that used supply levels of EVs have increased dramatically,’ Derren explains.

‘Sold trade records received by Cap HPI in 2022 were 100 per cent up on 2021, which in turn were 100 per cent up on 2022. They will potentially double in 2023 too, and that is with conversion rates at auction being low for EVs, so a large number remain unsold. 

‘With the consumer showing a lack of desire to purchase to the levels required to mop up supply, dealers themselves are being cautious and many not taking risks on buying in volume.  Demand and supply dynamics dictate used car prices, so values have dropped dramatically.’

Speaking to BBC Radio 4’s You & Yours programme last week, Jamie Caple, the boss of Derby-based second-hand car dealership Car Quay, explained that the sector is reluctant to add EVs to their forecourts while demand is low – and revealed that he is making losses on some electric cars advertised for sale.

‘We were surprised at the rate [electric car values] collapsed,’ Mr Caple told listeners.

‘You went from having an electric car in stock for a very short amount of time and it would turn very quickly, but when Tesla reduced the price of their cars it created a sort of perfect storm of values just free falling.

‘Every one of our electric cars is listed for less than what we paid for it which is obviously not ideal as a car dealer.

‘Listing cars and then selling them at a loss is not something you need to make a habit of.’

2. EVs are starting from a higher price point so have further to fall

When demand for second-hand cars skyrocketed in mid 2020 as a result of the shortage of new vehicles being produced due to component shortages, the already-premium value of used electric vehicles rose again.

Prices have remained high until October 2022, when values started to take a hit. 

‘Some three to four months ago, before the recent price drops, the same EV model could be £10,000 more with an electric propulsion rather than a petrol or diesel one,’ Derren says.

3. There are more incentives for the new car buyer on EVs

Tesla’s huge price cut in January, new model discounts and the availability of salary sacrifice schemes for EVs has made owning a new electric vehicle far more inviting than splashing out significant sums on a second-hand model. 

‘There are more incentives for new EVs, particularly for company car buyers – but not for the used buyer,’ explains Derren. 

‘Monthly payments on new cars can be not much more than for a used one, particularly following new car price drops made by Tesla in January.’

4. Range – and charge – anxiety are still major concerns for drivers

‘Range anxiety remains an issue, or at least concern on where the consumers are going to charge EVs and how long it will take to do so on longer journeys.’ 

Derren says the cold weather over the last few months has not helped the situation as lower temperatures diminish electric car ranges by up to a third. 

‘There were a number of reports surrounding queues for public charging points of two to three hours – particularly at motorway services – over the Christmas period, which also spooked the general public,’ he adds.

5. Rising energy prices mean they’re not as cheap to run as before

‘The cost to charge an electric car has risen dramatically in recent months. 

‘With electricity energy bills rising and the cost of petrol and diesel falling, motorists are in a scenario where it is no longer clear-cut that it is cheaper to charge an EV than it is to fuel a car with an internal combustion engine, particularly if not predominantly charging at home.’

The 20 biggest used car price RISERS in March

While the top 20 biggest used car price fallers are all electric cars, the biggest value riser in March was a diesel people carrier – the Mercedes-Benz V-Class (pictured). Check the list below to see if your motor makes the top 20 list of appreciating models

1. Mercedes-Benz V-Class diesel (2019-present)

Average used price March22/March23: £42,023/£53,792 

Price increase: £11,769 (28.0%)

2. Volkswagen California (2017-present) 

Average used price March22/March23: £41,533/£51,433 

Price increase: £9,900 (23.8%)

3. Citroen C-Zero ELECTRIC (2011-2019)

Average used price March22/March23: £8,050/£9,900

Price increase: £1,850 (23.0%)

4. Suzuki Celerio (2014-2019)

Average used price March22/March23: £5,813/£7,025

Price increase: £1,213 (20.9%)

5. Fiat Panda (2012-present)

Average used price March22/March23: £8,741/£10,452

Price increase: £1,711 (19.7%) 

6. Renault Twingo (2014-2020)

Average used price March22/March23: £6,463/£7,731

Price increase: £1,269 (19.5%)

7. Volkswagen Caddy Life diesel (2010-2021) 

Average used price March22/March23: £16,650 /£19,600

Price increase: £2,950 (17.7%)

8. Citroen C1 (2014-2022) 

Average used price March22/March23: £7,538/£8,840 

Price increase: £1,302 (17.6%)

=9. Toyota Camry hybrid (2019-2022)

Average used price March22/March23: £19,800/£23,150

Price increase: £3,350 (16.9%) 

=9. Mitsubishi Mirage (2019-2021)

Average used price March22/March23: £8,130/£9,505

Price increase: £1,375 (16.9%)

=9. Peugeot 108 (2014-2022) 

Average used price March22/March23: £7,852/£9,166

Price increase: £1,314 (16.9%)

12. Rolls-Royce Wraith (2013-present)

Average used price March22/March23: £162,100/£188,700 

Price increase: £26,600 (16.4%)

13. Smart ForTwo Cabriolet (2015-2019) 

Average used price March22/March23: £9,851/£11,425 

Price increase: £1,574 (16.0%) 

14. Fiat 500C (2009-present) 

Average used price March22/March23: £9,943/£11,521

Price increase: £1,578 (15.8%)

15. Hyundai i10 (2019-present)

Average used price March22/March23: £10,144/£11,696

Price increase: £1,552 (15.3%)

=16. Mini Cooper Clubman diesel (2015-2019)

Average used price March22/March23: £15,348/£17,671

Price increase: £2,324 (15.1%)

=16. Vauxhall Adam (2012-2019)

Average used price March22/March23: £8,763/£10,088

Price increase: £1,325 (15.1%)

18. Nissan Juke diesel (2010-2020)

Average used price March22/March23: £9,508/£10,942

Price increase: £1,433 (15.0%)

19. Mini One Hatch (2018-2022)

Average used price March22/March23: £11,588/£13,288

Price increase: £1,700 (14.7%)

20. Volkswagen Caravelle diesel (2010-2020) 

Average used price March22/March23: £33,800/£38,750

Price increase: £4,950 (14.6%)

Source: Cap HPI

*where fuel type isn’t listed, values represent models across all engine ranges  

Consumers hit the brakes on second-hand electric cars: Experts warn that some models are likely to fall further in price in the coming months as more advanced – longer range – EV models enter the new market and are available with more incentives

WHAT’S THE GENERAL OUTLOOK FOR SECOND-HAND CAR PRICES IN 2023?

Derren tells us that the overall outlook for used values in 2023 is ‘reasonably positive’. 

‘Although there are still some models which are expected to adjust from artificially high positions against cost new as the new car supply situation continues to improve, many models are likely to see levels of depreciation which are better than long term averages, as the disruption in new car supply from the pandemic and semi-conductor shortages starts to translate into reduced levels of new car volume later in the year,’ he explained.

‘However, for battery electric models, the situation is more varied. 

‘Although some models have seen hefty reductions in used values in recent months and are now looking good value against competitors or ICE [internal combustion engine] equivalents, others still have further to fall; any vehicles which remain high against list price are expected to drop significantly and some of the newer models are likely to see used value reductions as more cars enter the used market.’