Dealers See Sales Chance With Cheaper Used EVs For Urban Buyers
- November 27, 2019
- Posted by: John Swift
- Category: Automotive Industry
Second-hand EVs are splitting into a ‘two-speed market’ as buyers increasingly looking for cheaper ones are pushing up their values while the more expensive premium models struggle.
Just days after the SMMT published a report showing a 13% sales growth in Q3 for used hybrids and pure EVs, Cap HPI has now said that dealers can generate good business by offering the smaller, cheaper EVs. It cites the examples of the Citroen C-Zero and Peugeot iON which have both seen impressive RV rises. Two years ago a 2018/10,000 mile C-Zero would have retailed at around £6,000 whereas today a similar example is into five figures.
It says the iON and Renault ZOE are enjoying similar value buoyancy as more urban drivers want them for short commutes and school run type journeys but there is a relative shortage of supply.
Analysts say EVs with a ceiling of around £17,000 at 12 month/10,000 miles are the ones generating the best business and biggest profits for retailers but warn that above that price point demand drops off dramatically.
Chris Plumb, Cap HPI’s senior valuations editor, said that high-end cars such as Jaguar I-Pace (18-), Audi E-Tron (18-) and Tesla Model X (16-19) have all seen values reduce over the past few months.
“Today a BMW i8 (13-) coupe is worth around £20,000 less at one year old and 10,000m than it was two years ago. Equally the Jaguar I-Pace (18-) has seen values drop around £10,000 over the last 12 months. 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.”
“We are in a transformational period for the alternative fuelled vehicle with the rapid growth of new car volumes and greater choice in the used sector.
Expect To See Demand Continue To Increase
“The roll-out of charging infrastructure and increased battery ranges will only accelerate the adoption of these vehicles. Over time, used values have stabilised and now perform against the same market pressures as their petrol counterparts.
“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.”